Bookkeeping

A credit account represents an increase in assets or a decrease in liabilities, while a liability account represents an obligation or debt owed by the organization. Sal purchases a $1,000 piece of equipment, paying half of the purchase price immediately and signing a promissory note for the remaining balance. Sal’s […]

Among the various methods of calculating depreciation, the Double Declining Balance (DDB) method stands out for its unique approach. This article is a must-read for anyone looking to understand and https://quick-bookkeeping.net/ effectively apply the DDB method. Whether you’re a business owner, an accounting student, or a financial professional, you’ll find […]

For better organization, you can keep the same type of product on a single pallet. You’ll also need to keep self-supporting inventory at the bottom to reduce the chances of damage. Most inventory-driven businesses do an annual inventory count, called an audit, for tax purposes. This compares a physical count […]

Treasury notes and bonds as the risk-free rate of return because they will not default on the return. If the expected rate of return is lower than the rate, the investor is inclined toward dropping it. However, before finalizing the project, the investor should check if the IRR is favorable […]

Here is an example of how to prepare the balance sheet from our unadjusted trial balance and financial statements used in the accounting cycle examples for Paul’s Guitar Shop. The balance sheet is basically a report version of the accounting equation also called the balance sheet equation where assets always equation liabilities plus shareholder’s equity. From all the […]