by angelito-2 | Sep 27, 2023 | Bookkeeping
However, an extremely high ROE is often due to a small equity account compared to net income, which indicates risk. Net income is calculated as the difference between net revenue and all expenses including interest and taxes. It is the most conservative measurement...
by angelito-2 | Jun 8, 2022 | Bookkeeping
Basically, the cash discount received journal entry is a credit entry because it represents a reduction in expenses. When the insurance premiums are paid in advance, they are referred to as prepaid. At the end of any accounting period, the amount of the insurance...
by angelito-2 | Apr 4, 2022 | Bookkeeping
It is listed as an expense, and so should be used whenever an item is calculated for year-end tax purposes or to determine the validity of the item for liquidation purposes. Subsequent years’ expenses will change as the figure for the remaining lifespan changes....
by angelito-2 | Feb 4, 2022 | Bookkeeping
If basis is adjusted, the depreciation deduction may also have to be changed, depending on the reason for the adjustment and the method of depreciation you are using. The ACRS percentages for 19-year real property depend on when you placed the property in service in a...
