While each component—inventory, accounts receivable, and accounts payable—is important individually, collectively, the items comprise the operating cycle for a business and thus must be analyzed both together and individually. The formula to calculate working capital—at its simplest—equals the difference between current assets and current …
White-collar workers are suit-and-tie workers who work at a desk and, stereotypically, eschew physical labor. White-collar work used to mean a high level of education and the assumption of securing a cushy job with perks. That distinction today is blurred by the fact that white-collar employment has become the dominant working class in the …
The reason behind splitting expense accounts up into smaller accounts is for tracking purposes. This organizational method to reviewing expense accounts is invaluable. A different sub-account can be created for each type of expense your business incurs. Expense Categories An expense account helps you track and sort the various expenses your …
The principle of consistency should also be maintained to ensure accurate comparisons over different accounting periods. Equity accounts represent the residual interest in the assets of an entity after deducting liabilities. Essentially, it’s what’s left for the owners if the company were to pay off all its liabilities. It includes …
We hope this article has helped clarify depreciation for you and given you a better understanding of the process. Depreciation is simply a way of allocating the cost of an asset over its useful life. There are also special rules and limits for depreciation of listed property, including automobiles. Computers and related peripheral equipment …
No, once a check is voided, it cannot be reinstated or reused as a valid form of payment. It ensures that the check cannot be accepted by banks or financial institutions for payment. If a mistake was made in voiding the check, a new check must be issued. If someone requests a voided check from […]