Retained earnings are a type of equity and are therefore reported in the shareholders’ equity section of the balance sheet. Although retained earnings are not themselves an asset, they can be used to purchase assets such as inventory, equipment, or other investments. Therefore, a company with a large retained earnings balance may be well-positioned to […]Continue reading
Bookkeeping
Business taxes Services City of Philadelphia
Content Personal tools Sales and Use Tax Sales, Use, & Hotel Occupancy Tax Interact with 311 online Business Forms and Instructions It should be set up as an open-end investment fund with the aim to invest solely in financial instruments, which includes cash at banks. There are no requirements for shareholders or profit distributions. Profit […]Continue reading
Debits & Credits: Account Equation
Content Debits and credits Debit vs. credit accounting FAQ Over 4 Hours of Free Course Content,No Ads,and No Personal Data Collected The Accounting Equation: Debits & Credits Why Do Accountants Use Debit (DR) and Credit (CR)? Liability Accounts Examples of Debit and Credit Meaning of an Account Some balance sheet items have corresponding “contra” accounts, […]Continue reading
Deferred Revenue Journal Entry
Content What Is The Revenue Recognition Principle? Accounting 101: Deferred Revenue And Expenses Company Installment Sales Method And The Revenue Recognition Principle Avoid The Risks Associated With Manual Processes The Automation From Ordways Revenue Recognition Software How To Improve Your Recurring Revenue Collection? When this matching is not possible, then the expenses will be treated […]Continue reading
Fixed Overhead Spending Variance Meaning, Formula, Example & More
Content Learn the Basics of Accounting for Free Variable Overhead Expenditure Variance Overhead Variances Favourable variable overhead spending variance shows that the company has incurred lower costs than the average cost. Standard Cost for Actual Input (Variable Overhead) So the only factor controllable for operational managers is efficiency in operations. If the prices do not […]Continue reading
What Is the Extended Accounting Equation?
Content Elements of the fundamental accounting equation How the Extended Equation Works Accounting 101 Basics Final Thoughts On Calculating The Equation Assets = Liabilities + Equity Not All Transactions Affect Equity Sample Accounting Equation Transactions Expanded Accounting Equation X purchases new equipment worth $2,000 which decreases its assets and increases its assets. Suppose you’re attempting […]Continue reading
Bookkeeping and Advisory Services for Construction Companies
From tracking project expenses to handling vendor payments, there’s no shortage of detailed accounting tasks that require precise attention. Understanding construction accounting helps construction firms improve cash flow, track project profitability, and stay compliant with tax regulations. This guide to construction accounting offers insights to make bookkeeping an asset rather than a headache. Cash flow […]Continue reading
Managing Assets Under Construction in Accounting Practices
Unfortunately, it’s not as simple as agreeing on compensation with a worker and paying them the same rate per project. Explore effective strategies for managing assets under construction, focusing on accounting practices, cost capitalization, and tax considerations. A surefire way to lose out on project profitability is to do work you’re not paid for. CFMA’s […]Continue reading