The following are general rules to qualify for the prepaid expense tax deduction and how they can impact yourbusiness. Prepaid rent is an important expense account to understand on the balance sheet. Whether it is an asset or liability depends on the party remitting payment and the one receiving it. Proper recording and amortization of […]
Company XYZ sells $2,400 in gift cards to customers in February 2015. Your customer makes an advance payment for their first year upon subscription. This revenue is deferred until they have received a full year’s use of your service. So while the company has received cash in this period it will not record revenue. How […]
There are several instances where a company could generate revenue before providing the goods or services that go with it. Unearned revenue is classified as a current liability on the balance sheet. It is a liability because it reflects money that has been received while services to earn that money have yet to be provided. […]
This article is an attempt to provide an insight into both types of accounting careers, which will help one to determine which career path is the best for your future. Public accounting firms range in size from sole practitioners to a few huge international firms that employ hundreds of thousands of CPAs throughout the world. […]
This section tells you how the company finances its long-term investment. Investing activities are business activities related to growing a business and bringing profits to the company in the long term. It involves buying and selling long-term assets and other business investments. When adding a new machine, for example, the company can …
Listing how much the business is worth after expenses are paid is valuable for planning purposes. A statement of shareholder equity can tell you if you should borrow more money to expand, whether you need to cut costs or whether you’ll make a profit on a sale. It can also help you attract outside investors […]