How to Calculate the Value of a Salvaged Car
The matching principle is an accrual accounting concept that requires a company to recognize expense in the same period as the related revenues are earned. If a company expects that an asset will contribute to revenue for a long period of time, it will have a long, useful life. Determining the value of a car […]
Individual Taxpayer Identification Number Internal Revenue Service
They review the applicant’s documentation and forward the completed Form W-7 to IRS for processing. An Employer Identification Number (EIN) is also known as a federal tax identification number, and is used to identify a business entity. It is also used by estates and trusts which have income which is required to be reported on […]
Accounting rate of return ARR calculation
The following formula is used to calculate the accounting rate of return of an asset or business. However, in the general sense, what would constitute a “good” rate of return contra revenue varies between investors, may differ according to individual circumstances, and may also differ according to investment goals. This calculator does not take into […]
Responsibility center definition
It was no surprise to management that the department manager’s wages were exactly as expected. Even though the custodial department manager worked more hours in the month of December, the manager is a salaried employee, so the wages are the same regardless of the number of hours worked. Let’s use this report to explore how […]
The 9 Best Small Business Accounting Software of 2023
It’s useful for small businesses with limited financial transactions. We created Simple Startup to help you simplify your finances, truly understand your numbers, and make smart, informed business decisions. Part of this commitment is keeping you informed on financial news, tools, tips, and stories to help drive more success for your business. Today’s volatile, uncertain, […]
How to Figure Shorts & Over Entries in Accounting
Debit your cash short and over account in your journal entry by the amount of cash short. Alternatively, credit your cash short and over account by the amount of cash over. In the example, debit your cash short and over account by $10 to record the cash short amount. Then, we’ll walk through an example […]