The entry for the ROU asset is a debit to Lease Expense for $33,307 and a credit to Right-of-use (ROU) Asset for the same amount to record the amortization. Base rent, also known as fixed rent, is the portion of the rent payment explicitly stated in the contract. A leasing contract may include a payment […]
That’s because the vast majority of businesses in the United States use the “cash basis” accounting method. This simply means that the company records revenue as the money is received and expenses as it pays them. If I pay for insurance, for example, I simply log the expense as any other bill when I pay […]
Yarilet Perez is an experienced multimedia journalist and fact-checker with a Master of Science in Journalism. She has worked in multiple cities covering breaking news, politics, education, and more. The Galaxy Blend has transitioned from Raw Materials (imported beans) to Finished Goods (roasted and packed beans). Which of these is most …
Inventory turnover measures the number of times a small business sells its inventory during a given period. Develop an inventory management system that will help you save money in the long run by saving time and reducing waste. Using the same equation from earlier, we arrive at $22 million for the ending inventory balance in […]
Accumulated depreciation can be useful to calculate the age of a company’s asset base, but it is not often disclosed clearly on the financial statements. Capital expenses are recorded on a company’s balance sheet, but full recognition of the asset is usually spread across several years. This enables the business to recognize asset …
Because of their stable dividends and lower volatility, preferred stocks are often favored by institutional investors pursuing a predictable income stream. These stocks are also normally less liquid than common stocks, meaning they are traded less frequently, making them less suitable for retail investors looking for short-term gains. …