The next transaction figure of $2,800 is added directly below the January 9 record on the debit side. The new entry is recorded under the Jan 10 record, posted to the Service Revenue T-account on the credit side. As you…
Bookkeeping
This may include computing the salary of the employees and estimating the depreciation value of a certain asset. Yarilet Perez is an experienced multimedia journalist and fact-checker with a Master of Science in Journalism. She has worked in multiple cities…
Indirect costs consist of all other expenses, such as indirect labor or insurance. For example, if you’re using units produced, you would need to first determine your total cost for each unit. For this example, we’ll say that each manufacturing…
Therefore, the net realizable value (NRV) estimates the amount that a seller would expect to receive if the asset in question was sold, net of any selling or disposal costs. The net realizable value (NRV) is an accounting method to…
The accounting equation shows the amount of resources available to a business on the left side (Assets) and those who have a claim on those resources on the right side (Liabilities + Equity). However, due to the fact that accounting is kept…
An increase in the accounts payable indicates an increase in the cash flow of your business. This is because when you purchase goods on credit from your suppliers, you do not pay in cash. Thus, an increase in accounts payable…
The manner is which the material is presented flows easily as reading. The extra information is helpful for students wanting extra practice. For an introductory accounting class with focus on US the concepts covered are typical. As an accountant, you’re…