Category: Bookkeeping

  • 16 2 Differentiate between Operating, Investing, and Financing Activities Principles of Accounting, Volume 1: Financial Accounting

    Investing, broadly, is putting money to work for a period of time in some sort of project or undertaking in order to generate positive returns (i.e., profits that exceed the amount of the initial investment). It is the act of allocating resources, usually capital (i.e., money), with the expectation of generating an income, profit, or…

  • Variable Costs Examples, Formula, Guide to Analyzing Costs

    When a transaction takes place, it typically involves both private costs and external costs. Doug is a Chartered Alternative Investment Analyst who spent more than 20 years as a derivatives market maker and asset manager before “reincarnating” as a financial media professional a decade ago. Cost is thus another vital concept in the study of…

  • Accounting journal entries

    Robert Johnson Pvt Ltd needs to determine its accounts payable turnover ratio for 2019 It had an opening accounts payable balance of $500,000 and a closing accounts payable balance of $650,000. That is, it represents the aggregate amount of short-term obligations that you have towards the suppliers of goods or services. Thus, the accounts payable…

  • How to Calculate Cash Flow Formulas Included

    Where n is the project lifetime in years; D is the discount rate, which is approximately equal to the interest rate value; and NCF is the net cash flow per year. For example, if company A makes $50 million in profit in a period of time, NCF shows a balance of only $10 million. We…

  • How to File Federal Income Taxes for Small Businesses

    Corporations with total assets non-consolidated (or consolidated for all corporations included within the consolidated tax group) of $10 million or more on the last day of the tax year must file Schedule M-3 (Form 1120) instead of Schedule M-1. See the separate Instructions for Schedule M-3 (Form 1120) for provisions that also affect Schedule L.…

  • Adjusting Entry for Depreciation Expense Calculation Example

    To sustain timely performance of daily activities, banking and financial services organizations are turning to modern accounting and finance practices. Maximize working capital with the only unified platform for collecting cash, providing credit, and understanding cash flow. Transform your accounts receivable processes with intelligent AR automation that delivers value across your business. An asset is…