Or, we can say period costs are those expenses not expensed for producing the good or service. The cash balance declines as a result of paying the commission, which also eliminates the liability. However, rather than the entire Capex amount being expensed at once, the $10 million depreciation expense appears on the income statement across … Continue reading “What is the matching principle?”
The pay period for hourly employees ends on March 28, but employees continue to earn wages through March 31, which are paid to them on April 4. The employer should record an expense in March for those wages earned from March 29 to March 31. There are times when it’s harder to understand if expenses … Continue reading “The Matching Principle in Accounting What You Need to Know”
You know the fixed rate of interest that you will get for your bond when you buy the bond. The weighted average duration can also be calculated for an entire bond portfolio, based on the durations of the individual bonds in the portfolio. The value of your investment will fluctuate over time, and you may … Continue reading “I bonds interest rates”
Higher-income taxpayers are required to pay higher Medicare taxes. In 2013, an additional Medicare tax was implemented, imposing an extra 0.9% of taxes on earnings over $200,000. Employees at U.S. businesses are required to pay what are known as FICA taxes, often referred to as payroll taxes. Your FICA taxes impact your final net pay … Continue reading “Topic no 751, Social Security and Medicare withholding rates Internal Revenue Service”
If you are serious about drawing, you might also want to consider a storage place for your art, or a drawing portfolio-art case. If you are also on the move a lot, you will need a carry case for all your tools and materials. Many of the art containers you can purchase today have stackable … Continue reading “What To Draw”
When using T-accounts, a debit is on the left side of the chart while a credit is on the right side. Debits and credits are utilized in the trial balance and adjusted trial balance to ensure that all entries balance. The total dollar amount of all debits must equal the total dollar amount of all … Continue reading “Debit vs Credit: Bookkeeping Basics Explained”
Some examples of spheres that we see in daily life includes balls, globes, decorative lights, oranges, etc. The simplest measurement that can be made on a sphere is its radius. The volume of the sphere is calculated using its radius. This space occupied depends on the shape of the object.An important check before calculating the … Continue reading “VOLUME Definition & Usage Examples”
Economic profit does not indicate whether or not a business decision will make money. It signifies if it is prudent to undertake a specific decision against the opportunity of undertaking a different decision. As shown in the simplified example in the image, choosing to start a business would provide $10,000 in terms of accounting profits. … Continue reading “Opportunity Cost: Definition and Examples”
For the AUD, FAR, and REG sections, your total score is a weighted combination of scaled scores from multiple-choice questions and task-based simulations. Multiple-choice questions count for 50% of the total score and tasked-based simulations count for the other 50%. It’s important to understand that 75 doesn’t represent a percentage of the total questions you … Continue reading “What is the Uniform CPA Examination?”
The book value concept is overrated, since there is no direct relationship between the market value of an asset and its book value. At best, book value can only be considered a weak replacement for market value, if no other valuation information is available about an asset. The major limitation of the formula for the … Continue reading “Book Value of Assets: What It Is and How to Calculate It”
