Lưu trữ Danh mục: Bookkeeping

In other words, accountants should look beyond the surface of a transaction to its underlying economic substance. Other examples include one company essentially acting as an agent for another, so it should only record a sale on behalf of the second cost of goods sold for cleaning industry company in the amount of their commission. […]

For instance, if a company delivers a product but retains significant risks and rewards of ownership, revenue recognition would be deferred until those risks and rewards are also transferred to the buyer. This ensures that the revenue reported in the financial statements aligns with the actual economic benefits realized by the company. Financial reporting is […]

Analysts use this ratio to determine if a company’s current share price is overvalued or undervalued compared with its earnings per share. If the P/E is high, they consider it overvalued and recommend that investors wait for their stock price to drop before purchasing. If the P/E is low, they consider it undervalued and recommend […]

Before investing, it’s wise to use various financial tools to determine whether a stock is fairly valued. However, there are problems with the forward P/E metric—namely, companies could underestimate earnings to beat the estimated P/E when the next quarter’s earnings arrive. Furthermore, external analysts may also provide estimates that diverge from the company estimates, creating […]

Assuming that the discount rate is 5.0% – the expected rate of return on comparable investments – the $10,000 in five years would be worth $7,835 today. The Present Value (PV) is a measure of how much a future cash flow, or stream of cash flows, is worth as of the current date. When the […]

Much more on “discounting” further down, but we do also have a separate article on discounting future cash flows if you’re interested. As we can see in the above example, time can make a big difference as to how much money invested today can grow over time. Assume an investment of money with a known […]

Contract and Grant Cost Share Encumbrances are created for purchase orders that are cost-share funded and coded with balance type code CE. But, if the encumbrance amount has to be altered for any reason, that will either increase or decrease the appropriations account. This purchase order covers the anticipated costs, including materials and labour, required […]

In the realm of financial management, it is crucial to have a clear understanding of various accounting concepts and practices. One such concept that plays a significant role in financial reporting and budget management is encumbrance accounting. There are various software options available that can streamline the process and improve accuracy. These systems enable efficient […]

Click on the “Add CC Expense” link to expand your first data entry line. If this is a recurring transaction — say, a rent payment — zoho books review you can click on the “Create rule from this transaction” link (f) to open the rules screen. You can also add an attachment to the transaction […]

The impact of the recorded credit card payment reflects in the financial reports, providing a clear overview of the company’s financial status. This process begins with recording the statement of comprehensive income date, payee, and amount of the credit card charge in QuickBooks Online. It’s important to categorize the expense correctly to ensure accurate financial […]