Category Archives: Bookkeeping

Oil & Gas Financial Modeling 101: Accounting, Valuation & More

Inventory write-offs are typically done when goods are stolen, damaged, expired, or made obsolete by a new product or shifts in demand. Let’s put the COGS formula into practice, since this is an especially important part of the inventory accounting process. Ending inventory, also called closing inventory, refers to the total value of a company’s […]

Understanding Audit Assertions and Why Theyre Important

RealPage also trained landlords to limit concessions (e.g., free month(s) of rent) and other discounts to renters. The complaint also cites internal documents from RealPage and landlords touting the fact that landlords have responded by reducing renter concessions. RealPage’s alleged conduct deprives renters management assertion of the benefits of competition on apartment leasing terms and […]

Days Sales in Inventory DSI: Evaluating Quality of Earnings and Inventories

For investors, that’s another key metric that gives them insights into the value of a company. Since DSI indicates the amount of time a company’s cash is tied up in its inventory, the aim is low DSI values for the company. If a company scores a low DSI, that company frequently selling its inventory, which […]

Tax Shield What Is It, Formula, How To Calculate, Examples

Property with a long production period and certain aircraft placed in service after December 31, 2023, and before January 1, 2025, is eligible for a special depreciation allowance of 80% of the depreciable basis of the property. The special depreciation allowance is also 60% for certain specified plants bearing fruits and nuts planted or grafted […]

Allowance for Doubtful Accounts: Methods of Accounting for

The balance sheet would report equipment at its historical cost and then subtract the accumulated depreciation. A contra liability is a general ledger account with a debit balance that reduces the normal credit balance of a standard liability account to present the net value on a balance sheet. Examples of contra liabilities are Discounts on […]

What Is Notes Payable? Definition, How to Record, & Examples

Accounts payable is always found under current liabilities on your balance sheet, along with other short-term liabilities such as credit card payments. On February 1, 2019, the company must charge the remaining balance of discount on notes payable to expense by making the following journal entry. Notes payable are required when a company borrows money […]

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