The next step is to calculate the sum total of the indirect expenses once you have recorded all such expenses. In this method, overhead is calculated by dividing the overheads by the number of units produced. This is quite a challenging task as these are indirect costs that have no direct relation with the goods […]

Not every organization will have an identical presentation, but rent expense is now widely referred to as lease expense on the income statement. As stated previously, the rent payments for operating leases under ASC 840 were expensed and therefore considered off-balance-sheet transactions. This would be beneficial for lessees as organizations did not have to report […]

If you’re an investor, this information can help you better understand whether you should invest in a company. If you’re a business owner or entrepreneur, it can help you understand business performance and adjust key initiatives or strategies. If you’re a manager, it can help you more effectively manage budgets, oversee your team, and develop […]

The scrap value of an asset differs based on the method of depreciation a company adopts. The more you hold on to send your vehicle to the rescue yard, the less it will be worth. In the case there are parts that disintegrate rapidly, these parts would be the top reasons why your car generated […]

When payday rolls around on Oct. 5, Timothy records a payroll journal entry for the entire amount he owes his employees, which is $2,500 ($250 per workday x 2 employees x 5 working days). Accounting software automatically numbers all journal entries so that auditors can easily track deletions. Auditors will question accounting records with missing […]

Market volatility is most damaging to your investment returns when you liquidate at temporarily low prices. Long-term investors generally avoid this fate by holding their positions through crashes and corrections. Read on for a review of the benefits of long-term investing, followed by an introduction how to calculate sales tax to 10 top stocks that […]

The software makes it easy to stay organized, keep track of payments owed and expenses made, send invoices and accept payments. During a trial, small business owners get access to all FreshBooks features (like FreshBooks invoicing, time tracking, and expensing) except Advanced Payments. So you’ll know exactly why it’s the accounting software used by over […]