Of Account Definition & Meaning
In the first place, we maintain the records of transactions by writing various accounting books like journals and ledgers, etc. In accounting, you’ll come across certain titles which appear to bear similar duties but actually have unique job descriptions. In this section, we’ll briefly review the roles of accountants vs. CPAs and tax professionals. My […]
Understanding Ordinary Least Squares OLS Regression
The denominator, n − m, is the statistical degrees of freedom; see effective degrees of freedom for generalizations.[12] C is the covariance matrix. The method of least squares actually defines the solution for the minimization of the sum of squares of deviations or the errors in the result of each equation. Find the formula for sum of […]
Understanding Ordinary Least Squares OLS Regression
The denominator, n − m, is the statistical degrees of freedom; see effective degrees of freedom for generalizations.[12] C is the covariance matrix. The method of least squares actually defines the solution for the minimization of the sum of squares of deviations or the errors in the result of each equation. Find the formula for sum of […]
4 4 When Should a Company Capitalize or Expense an Item? Principles of Finance
The price of shipping and installing equipment is included as a capitalized cost on the company’s books. The costs of a shipping container, transportation from the farm to the warehouse, and taxes could also be considered part of the capitalized cost. These expenses were necessary to get the building set up for its intended use. […]
A Beginner’s Guide to the Multi-Step Income Statement
One can get a break up of the operating and non-operating components of the business. Therefore, the net income factors in non-operating items such as interest expense, other non-operating costs such as non-recurring losses from inventory write-downs, and income taxes paid to the government. The optimal income statement format depends on a company’s size, industry, […]
Rental Property Accounting & Bookkeeping Tips
Some landlords will also pay for the utilities of the property, which would count as an expense. There are also expenses related to the cost of doing business, such as marketing expenses, property management fees, accountant or attorney fees, and any other professional services that you may hire. Finally, the landlord is required to pay […]
Margin of Safety: Formula, Example, How to Calculate?
The cause of much confusion is that reference books and standards agencies use the term factor of safety differently. Design Codes and Structural and Mechanical engineering textbooks often use the term to mean the fraction of total structural capability over that needed (first sense). Many undergraduate Strength of Materials books use “Factor of Safety” as a […]
Allowance for Doubtful Accounts Simplified
Sales and the ultimate decision that specific accounts receivable will never be collected can happen months apart. During the interim, bad debts are estimated and recorded on the income statement as an expense and on the balance sheet through an allowance account, a contra asset. In that way, the receivable balance is shown at net […]
What is a contingent liability?
If the firm manufactures 1,000 bicycle seats in a year and offers a warranty per seat, the firm needs to estimate the number of seats that may be returned under warranty each year. The full disclosure principle requires that any relevant and significant facts that are related to financial performance must be disclosed in the […]
How to Reconcile in QuickBooks
Sign up for Synder today or book a seat at a Weekly Public Demo to experience firsthand how Synder automates bookkeeping and accounting tasks for online transactions. For non-connected accounts, you follow the same path however, reconciliation requires manual entry and matching of transactions. Now that we know how to prepare for the reconciliation process […]