What is Full-Time Equivalent FTE & How to Easily Calculate It

Any employee having at least 30 working hours per week (or 130 a month) is considered a full-time employee under this act. They also use it to calculate labor costs for the expected project workload and subsequently define the funds needed to finish a project. The full-time employees work 40 hours per week and 52 […]

Adjusting Entries Definition, Purpose, & Types

According to the accrual concept of accounting, revenue is recognized in the period in which it is earned, and expenses are recognized in the period in which they are incurred. Some business transactions affect the revenues and expenses of more than one accounting period. For example, a service providing company may receive service fees from […]

The accounting equation Student Accountant Students

According to the revenue recognition principle, the company cannot recognize that revenue until it meets this performance obligation or in other words provides the service. Therefore, the company has a liability to the customer to provide the service and must record the liability as unearned revenue. The liability https://business-accounting.net/ of $4,000 worth of services increases […]

Adjusting entries explanation, purpose, types, examples

If Laura does not accrue the revenues earned on January 31, she will not be abiding by the revenue recognition principle, which states that revenue must be recognized when it is earned. Over 1.8 million what are adjusting entries and why are they necessary professionals use CFI to learn accounting, financial analysis, modeling and more. […]

Incurred Definition, Loss, Expense, vs Paid Expense

Whilst the use of credit cards is an easy, uncomplicated way to pay for goods, it can become an unmanageable cost. A cost incurred is a cost that a company (or other organization) becomes liable for. Many businesses are expected to submit to health inspections and authorizations to obtain certain business licenses and permits. Cost […]

What Assets Can And Cannot Be Depreciated, And Why?

Content What are the Benefits of Depreciation Tracking via Asset Management Software? Depreciation Method The Difference Between Income Tax Expense & Income Tax Payable Stay up to date on the latest accounting tips and training Factors Affecting the Depreciation Method Learn more about this method with the units of depreciation calculator. Remember, the bouncy castle […]

Getting Your Head Around Small Business Payroll

Now you can start issuing payments on schedule via check or, more commonly, via direct deposit. Employees will have to share their bank account information to have checks automatically deposited into their bank account. As long as you are following employment laws, you can also pay in cash or on payroll cards. It is important […]

contra revenues account definition and meaning

For example, a grocery store displays advertisements for a national brand in its weekly flyer. The national brand gives the grocery store cash, reducing the overall cost of printing the flyer. The purpose of the Allowance for Doubtful Accounts is to track the reduction in the value of the asset while preserving the historical value […]

Budget Definition: What Is a Budget?

The software is designed to help individuals and businesses keep track of their spending and account for every penny spent. Once areas for improvement have been identified, the company can make adjustments to the budget. These adjustments can be small changes that are designed to improve efficiency, reduce costs, or increase revenue. Accounting software plays […]

Inventory Management

Also, numerical examples are used to show the utility of the proposed models. In Section 4 we explain a brief summary of the results given in this paper based on a numerical example. The EOQ model seeks to ensure that the right amount of inventory is ordered per batch so a company does not have […]