Is A Home Loan An Asset Or A Liability?

Category: Bookkeeping

Is A Home Loan An Asset Or A Liability?

Interest becomes a liability only after the expense has been incurred. A company can always choose to prepay a debt obligation and thus not incur future interest charges. List the current portion of the loan payable and any accrued interest expense under Mortgaged Building an Asset on the Balance Sheet the current liabilities section of […] Read More »

Calculating Indirect Cost Recovery

Model Cost Policy Statement Indirect costs are necessary for all nonprofits to operate their programs. Indirect costs include the managerial staff, such as the Executive Director, Chief Financial Officer and their staff; Human Resources and IT staff; and depreciation costs for property and equipment. Without adequate funding, a nonprofit online bookkeeping would have to rely […] Read More »

What Is Annual Income? How To Calculate Your Salary

Content Net Income Vs Adjusted Gross Income (Agi): Knowing The Difference How To Calculate Net Income Operating Profit Vs Net Income The Difference Between Gross And Net Income How Do Earnings And Revenue Differ? That includes certain types of income from state and municipal bonds, some Social Security benefits, certain inheritances and gifts, and some […] Read More »

How To Determine Retained Earnings On A Balance Sheet

Content What Is A Retained Earnings Statement? Get Your Financial Statements Cheat Sheets Close Revenue Accounts Balance Sheet Vs Income Statement This number will be positive if the business made a profit, and negative if it suffered a loss. The goal of reinvesting this additional profit is to grow your business and increase earnings […] Read More »

Contra Liability Account

Content Closing Entries, Sales, Sales Returns & Allowances In Accounting Overview Of Accrued Revenue Start Your Business Closing Entries, Sales, Sales Returns & Allowances In Accounting Most businesses also have revenue that is incidental to the business’s primary activities, such as interest earned on deposits in a demand account. Sales revenue does not include sales […] Read More »

Do I Have To Be Good At Math To Get An Accounting Degree?

Content Roles & Responsibilities Of An Accounting Department When Is Revenue Recognized Under Accrual Accounting? What Is The Difference Between Accrual Accounting And Cash Accounting? Solvency is the measure of how well a company will be able to meets its long term debt obligations. These ratios are critical in determining the health and long term […] Read More »

Balance Sheet

Because there are two or more accounts affected by every transaction carried out by a company, the accounting system is referred to as double-entry accounting. The assets on the balance sheet consist of what a company owns or will receive in the future and which are measurable. For an illustration of some of these computations […] Read More »

Cash Basis Definition

Content Choosing An Accounting Method Trial Period Defining The Accrual Accounting Method What Is The Difference Between Accrual Accounting And Cash Accounting? Shifting Income To Defer Taxes: Choosing An Accounting Method The cash accounting method is more popular among smaller businesses. Sole proprietors, especially those who don’t have inventory, are particularly likely to use cash […] Read More »

Tools And Techniques Of Management Accounting

Content Key Skills For Management Accountants Income Statement A K.A. Profit And Loss Statement Tools And Techniques Of Management Accounting Management Accounting Example The main objective of managerial accounting is to produce useful information for a company’s internal use. Business managers collect information that encourages strategic planning, helps them set realistic goals, and encourages an […] Read More »

The Vertical Balance Sheet

If the purchase of computer equipment is $50,000 it would meet the capitalization threshold. The second standard is whether the equipment will be used within the classified balance sheet categories first 12 months of purchase. If the equipment is deemed to have a three-year lifespan, the company could elect to list it as a fixed […] Read More »