On the other hand, the accumulated depreciation is an item on the balance sheet. Secondly the debit to the depreciation expense will reduce the net income and retained earnings of the business resulting in a decrease in the owners equity. DebitProfits, which belonged to the owners of the business, h...

The challenge isn’t just knowing which expenses qualify for deductions; it’s catching mistakes in real time when employees submit expenses that blur the line between personal and business use. For business owners, accountants, and finance professionals, it’s important to know which exp...

Halfway through the year, she decides to order a further 30 at $15, and then another 20 lipsticks at $20 each at the end of the year. Lisa’s stock consists of 90 lipsticks, and by the end of the period, she sells 15 of them. If Robert uses LIFO to determine the cost of his inventory, [&hellip...

Apple’s R&D investments consistently yield strong ROI, making it one of the most profitable and innovative companies in the world. Apple is renowned for its innovation, largely due to its strategic investments in Research and Development (R&D). Apple’s consistent focus on R&D...

There are three basic types of it, exploring which will make payroll accounting meaning clearer. These comprise accrued wages, manual payments, and initial recordings. With the rise of digital currencies, businesses are also exploring crypto payroll solutions, allowing employees to receive salaries ...

In this written material, we have discussed the differences between trade discount and cash discount. In the accounting records of the seller the bookkeeping entry to record the cash discount would then be as follows. A cash discount is based on payment terms which vary from customer to customer. Li...

While gross income can give you a sense of how much you’re selling, net income reveals how efficiently you’re managing those earnings and expenses. Calculating your individual net income is then just a case of subtracting taxes and below-the-line deductions to reach a final figure. Properly calc...

ACCA is the internationally recognizable alternative to completing CA in India. The Chartered Accountant designation in Australia is conferred by Chartered Accountant Australia and New Zealand (CA ANZ). This qualification is renowned globally for its rigorous standards and comprehensive training. CP...

The manager may then meet with the sales and marketing team to try to figure out how to improve sales of those brands. The company might consider dropping Brand 3, the poorest performer, entirely. Understanding DIO requires context, as optimal values vary significantly by industry, business model, a...