SOLVED: Which set of accounts below would have a normal debit balance?Which set of accounts below would have a normal debit balance?A Expenses, Dividends, Common StockB Revenues, Dividends, Prepaid rentC Expenses, Dividends, CashD Dividends, Expenses, Unearned rent

LO 3.5Discuss how each of the following transactions for Watson, International, will affect assets, liabilities, and stockholders’ equity, and prove the company’s accounts will still be in balance. For reference, the chart below sets out the type, side of the accounting equation (AE), and the normal balance of some typical accounts found within a small […]

How To Calculate Accounting Rate of Return ARR

The weighted average is a weighted average of the rates of return earned on the separate investments in the project. The time value of money is the main concept of the discounted cash flow model, which better determines the value of an investment as it seeks to determine the present value of future cash flows. […]

Amortization vs Depreciation: What’s the Difference?

If your business makes money from rental property, there are a few factors you need to take into account before depreciating its value. As a reminder, it’s a $10,000 asset, with a $500 salvage value, the recovery period is 10 years, and you can expect to get 100,000 hours of use out of it. Its […]

What Is FIFO Method: Definition and Example

It’s recommended that you use one of these accounting software options to manage your inventory and make sure you’re correctly accounting for the cost of your inventory when it is sold. This will provide a more accurate analysis of how much money you’re really making with each product sold out of your inventory. FIFO is […]

What Is FIFO Method: Definition and Example

It’s recommended that you use one of these accounting software options to manage your inventory and make sure you’re correctly accounting for the cost of your inventory when it is sold. This will provide a more accurate analysis of how much money you’re really making with each product sold out of your inventory. FIFO is […]

Record consignment sales in QuickBooks Online

It may be useful to keep a separate record of all consigned inventory, for reconciliation and insurance purposes. After the month’s closing, the unsold goods were returned back to the consigner (Biggs Inc.). Therefore, there is a need to record the inventory receipt by crediting the Consignment Inventory Account and debiting the Finished Goods Inventory […]

A Quick Guide to Breakeven Analysis

Even if your fixed costs, like utility bills, stay the same, you should still calculate the break-even point to get an idea of the number of units you’ll need to sell to reach profitability. In other words, the breakeven point is equal to the total fixed costs divided by the difference between the unit price […]

How to Start A Freelance Accounting Business

Fit in all the work matters in such a way that you have a workable schedule for every one of them. There’s probably an idea that when working freelance, you can simply make plans as you go, and that’s possibly true if it’s your small side gig or if you have enough money saved, otherwise […]

Fundamentals of Financial Accounting

Accounting, on the other hand, refers to the process of reporting and communicating financial information about an individual, business, or organization. Accounting provides information for all these purposes through the maintenance of data, the analysis and interpretation of these data, and the preparation of various kinds of reports. Accounting helps you gauge where your small […]

What Predetermined Overhead Rate Is Formula and Sample

When the predetermined overhead rate is not exactly what the company estimated, the rate would be either overapplied or underapplied. Predetermined overhead rates are important because they provide a way predetermined overhead rate formula to allocate overhead costs to products or services. Predetermined overhead rates are essential to understand for eCommerce businesses as they can […]