Although accumulated depreciation doesn’t qualify as an asset, it’s still recorded on the asset section of your balance sheet as a contra asset that reduces the value of the depreciating asset. Buildings, vehicles, equipment, and other fixed assets are key to running a business, but their use also comes with wear and tear. Almost …
They are typically responsible for more than just paying incoming bills and invoices. A company’s Accounts Payable department tracks the amounts owed and records them as short-term obligations on the general ledger. They are also responsible for keeping these records up-to-date and ensuring that invoices get paid by the payment date. A …
Businesses are then responsible for remitting it to the government. Here’s how much sales tax you can expect to pay in each state, per the Tax Foundation. Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click […]
During the period when the retail store hasn’t paid, the retail store will have accounts payable for $5,000, while the manufacturer will have accounts receivable for $5,000. Once payment is received, the retail store will have a decrease in accounts payable of $5,000, while the manufacturer will have a decrease in accounts receivable of …
Banks borrow money from you in the form of deposits, and interest is what they pay you for the use of the money deposited. This happened during the great recession of 2009 when interest rates were cut to 0.5%, but the economy remained stagnant with little increase in investment. In 2009, the credit crunch meant that […]
Or, you can simply buy too much stock that is well beyond the demand for the product. That means you’re efficiently moving your products without having them sit on shelves for too long. Too high of turnover rate, and you run the risk of running out of product. Table of Contents Optimizing a company’s inventory […]