Category Archives: Bookkeeping

This practice is referred to as “averaging,” and involves taking the year-end (2019 and 2020) figures—let’s say for total assets—and adding them together, and dividing…

This article will describe opening balance equity, why it exists, and how to close it out so that your balance sheets are presentable to banks,…

However, computing an intangible asset’s acquisition cost differs from computing a plant asset’s acquisition cost. Firms may include only outright purchase costs in the acquisition…

Whether to chose equity or debt finance is one of the first questions that business owners need to tackle. Explore the differences, the benefits of…

The rent is paid by debiting the prepaid expense account (prepaid rent) and then crediting the cash account to record the money sent. A prepaid…

This lowers the creditor’s taxable income and results in a reduced tax liability. Further, since you are still liable for the debt, it can sell…

Now that we’ve got a sense of what a statement of cash flows does and, broadly, how it’s created, let’s check out an example. Using…

This showed that Walmart turned over its inventory every 42 days on average during the year. For fiscal year 2022, Walmart Inc. (WMT) reported cost…

Saudi Arabia, United Arab Emirates, Oman, Kuwait, Qatar, and Bahrain are some examples. Many countries produce oil in the Middle East and rely on exports…