To err is human, so it’s unreasonable to expect to complete projects without making any mistakes along the way. Unfortunately, accounting mistakes can spell trouble for a project as they can lead to cost variances. These changes may include adding or eliminating certain project activities that incur some set costs. Alternatively, the changes may relate to specific items, whose addition … Read More
Accumulated Depreciation: Everything You Need To Know
Instead, the cost is placed as an asset onto the balance sheet and that value is steadily reduced over the useful life of the asset. This happens because of the matching principle from GAAP, which says expenses are recorded in the same accounting period as the revenue that is earned as a result of those expenses. Unlike https://accounting-services.net/ a normal … Read More
What is the difference between adjusting entries and correcting entries?
Before we look at recording and posting the most common types of adjusting entries, we briefly discuss the various types of adjusting entries. The primary purpose of adjusting entries is to update account balances to conform with the accrual concept of accounting. This is posted to the Salaries Expense T-account https://bookkeeping-reviews.com/ on the debit side (left side). You will notice … Read More
Net Present Value vs Internal Rate of Return
The estimation is most accurate if one NPV used in the formula is positive and the other one is negative. However, within an exam situation, if a candidate ends up with two positive or two negative NPVs, do not waste time calculating a third. Put the values you have into the formula and complete the calculation; no marks will be … Read More
What are retained earnings and how to calculate them
In accounting, retained earnings are a company’s cumulative net income (profit) minus its dividend payments to shareholders. It represents the company’s money to finance its operations, expand its business, or pay off debt. Remember that your company’s retained earnings account will decrease by the amount of dividends paid out for the given accounting period. When https://ludmed.ru/otzyvy-patsientov/vnutrimatochnaya-peregorodka.html calculating retained earnings, you’ll … Read More