Category: Bookkeeping

That’s because of the challenges it presents, including storage costs, spoilage costs, and the threat of obsolescence. Work-in-progress inventory is the partially finished goods waiting for completion and resale. A half-assembled airliner or a partially completed yacht is often considered to be a work-in-process inventory. Net realizable value is the difference between the selling price […]

For the past 52 years, Harold Averkamp (CPA, MBA) has worked as an accounting supervisor, manager, consultant, university instructor, and innovator in teaching accounting online. He is the sole author of all the materials on AccountingCoach.com. Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides […]

If you opt to become a member, you will have access to various free study resources. In addition, for $1,596 for NACPB members and $1,996 for nonmembers, they offer a test preparation course. Remember that you are not required recording transactions to fulfill the work experience criteria before submitting your application. When you send the […]

CPAs must meet eligibility requirements, obtain state licensure, and follow strict principles established by the AICPA. Licensed CPAs can perform specialized tasks not allowed for general accountants, like representing clients to the IRS. I’ve met plenty of great accountants who don’t have a CPA, but in my experience, having the credential really helps to advertise […]

The fundamental accounting equation, as mentioned earlier, states that total assets are equal to the sum of the total liabilities and total shareholders equity. The balance sheet is one of the three main financial statements that depicts a company’s assets, liabilities, and equity sections at a specific point in time (i.e. a “snapshot”). This straightforward […]

Because the returns on these instruments are determined by the applicable market interest rates, the overall returns on money market funds are also determined by interest rates. The current ratio assesses a company’s ability to repay its short-term debts using all of its current assets, including marketable securities. Current assets are divided by current liabilities […]

For example, if XYZ Company paid $50 million to acquire a sporting goods business and $10 million was the value of its assets net of liabilities, then $40 million would be goodwill. Companies can only have goodwill on their balance sheets if they have acquired another business. Consequently, if an intangible asset has a useful […]

Freelance accountants can search for a job online or they can also let the job find them. We’ll tackle the active job search later and now let’s take a look at other marketing strategies. What really sets Toptal apart is the caliber of finance talent available in their network. I had a very specific and […]

Examples of current assets include cash, cash equivalents, accounts receivables, prepaid expenses or advance payments, short-term investments and inventories. Unlike the income statement, the balance sheet does not report activities over a period of time. The balance sheet is essentially a picture a company’s recourses, debts, and ownership on a given day. This is why […]

The amount of consumption tax collected by the freelancer is deducted by the business from its collections. Taxing things doesn’t just magically reduce them in isolation, it reduces them by reducing the net marginal value realized from each marginal increment. At the same marginal rate, a consumption tax reduces the incentive for additional work just […]