When the evidence is not reliable enough, auditors would require more information to ensure compliance to the standard. Although this type of evidence is not found high up in the list, analytical evidence can be said to be a good source of evidence. We cannot check access control for all employees if there are 1000 […]
Category Archives: Bookkeeping
Vertical analysis’ origins are traced back to the late 1800s, when financial analysts began looking at trends in financial ratios over time. This technique fosters informed decision-making and strategic planning, vital for sustained success in today’s competitive financial landscape. Vertical analysis is useful for single accounting period analysis, while horizontal analysis is used to compare […]
At the end of the six months, all unearned revenue has converted into revenue, since all money received accounts for the six mystery boxes that have been paid for. Unearned revenue is originally entered in the books as a debit to the cash account and a credit to the unearned revenue account. Unearned revenue is […]
Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. In this case, we can see Progressive has about $6.5 billion in float, and Mercury has roughly $1.5 billion. We can also see “Other Assets” and “Other Liabilities” are about equal, so we’ll net and ignore these. I am sure if the […]
Cloud accounting offers numerous advantages over traditional spreadsheet-based methods. These benefits are transformative for businesses of all sizes. Cloud accounting operates via the internet, connecting users to secure data centers. Businesses manage financial activities through web applications. These applications provide tools for various accounting functions. Our bookkeeping software and team of experts handle most of […]
A closing entry is a journal entry made at the end of an accounting period. It involves shifting data from temporary accounts on the income statement to permanent accounts on the balance sheet. The accounting cycle involves several steps to manage and report financial data, starting with recording transactions and ending with preparing financial statements. […]
It doesn’t cost you any more for your employees to make an extra unit, but at some point (maybe every 6,000 units produced per month) you’ll need to add one more salaried employee to your production line. When calculating the contribution margin, you only count the variable costs it takes to make a product. Gross […]
There are tools available to simplify the calculations for both the present and future value of annuities, ordinary or due. These online calculators typically require the interest rate, payment amount and investment duration as inputs. You may hear about a life annuity, where payments are made for the remaining lifetime of the annuitant (the person […]
Gross revenue is the total revenue brought in from sales activity, while net sales is basically gross revenue minus (or net of) returns, discounts, and allowances. Gross margin tells if an organization is producing income from direct costs finely, for example, direct workers and direct materials costs. We determine the gross margin by subtracting COGS […]
But instead of making him feel loved and cherished, this can cause a man to pull away. While these expressions of love may be what she wants from him, it’s not necessarily what he wants or needs from her. If a man keeps telling you that you hurt them a couple of times over, they’ll […]
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