Accounting Tools

APRIL 9, 2024

The Difference Between a Write-Down and a Write-Off In a write-down, the carrying amount of an asset is reduced in a firm’s accounting records to some lesser amount. In a write-off, the entire remaining balance of the asset is reduced to zero. In a write-off, the entire remaining balance of the asset is reduced to zero.

Auditing 40

Auditing Accounting Accounting 40

Accounting Tools

DECEMBER 20, 2023

What is Book Value? Book value is an asset's original cost , less any accumulated depreciation and impairment charges that have been subsequently incurred. The book values of assets are routinely compared to market values as part of various financial analyses.

Auditing 40

Auditing Accounting Accounting 40

Accounting Tools

FEBRUARY 12, 2024

This could result in an impairment charge against the asset, thereby drastically reducing its remaining book value. An unusual amount of wear and tear can result in an impairment charge, where a large part (or all) of the remaining book value of an asset is charged to expense in the current period. What is Wear and Tear?

Accounting 40

Accounting Accounting 40

Accounting Tools

AUGUST 6, 2023

Related Courses Closing the Books The Soft Close The Year-End Close What are Year-End Adjustments? Year-end adjustments are journal entries made to various general ledger accounts at the end of the fiscal year , to create a set of books that is in compliance with the applicable accounting framework.

General Ledger 75

General Ledger Accruals Billing Reconciling 75

Cloud Accounting Podcast

DECEMBER 13, 2023

Blake and David discuss Intuit's announcement that QuickBooks Desktop will no longer be sold as new subscriptions after July 2024. They also talk about the need for changes in the accounting profession, such as simplifying financial reporting requirements and revising the 150-hour rule. We appreciate you! Find us on Facebook and Instagram.

QuickBooks 67

QuickBooks CPA Financial Reporting Billing 67

Accounting Tools

JANUARY 18, 2024

Asset stripping involves the acquisition of a business in order to sell off its assets for a profit. This situation usually arises when the acquirer believes that some acquired assets can be sold off at an enhanced price. Related Articles Corporate Raider Poison Pill Scorched-Earth Defense

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Accounting Tools

MAY 13, 2024

A commercial fixed asset database will automatically turn off depreciation, as long as the termination date was correctly set in the system. A fixed asset can also be fully depreciated if an impairment charge is recorded against the original recorded cost, leaving no more than the salvage value of the asset. Depreciation.

Accounting 40

Accounting Accounting Financial Statements Expense Reports 40

Accounting Tools

JUNE 19, 2023

The amortization schedule shows that a larger proportion of loan payments go toward paying off interest early in the term of the loan, with this proportion declining over time as more and more of the loan's principal balance is paid off. It essentially reflects the consumption of an intangible asset over its useful life.

Auditing 75

Auditing Accounting Accounting 75

Accounting Tools

JULY 14, 2023

To amortize is the process of writing off the book value of an asset over its useful life. Amortization is usually conducted on a straight-line basis, with no acceleration of the write-off in the earlier periods of an asset’s useful life. The term is most commonly applied to intangible assets.

Auditing 40

Auditing Accounting Accounting 40

Accounting Tools

MARCH 5, 2024

Shrinkage is the difference between the book and actual amount of inventory. This means that any inventory losses are written off in the same reporting period in which they were initially discovered. What is Shrinkage? Its disappearance may be due to theft, damage, miscounting, administrative errors, or evaporation.

Cost Accounting 40

Cost Accounting Accounting Accounting 40

Accounting Tools

SEPTEMBER 20, 2023

Related Courses Closing the Books The Soft Close The Year-End Close How to Automate the Cutoff An intensely manual process at the end of each reporting period is the cut off of incoming inventory items. An alternative to the manual cut off process is to automate it.

Purchase Order 40

Purchase Order Computation Invoicing Accounting 40

Accounting Tools

JANUARY 19, 2024

Derecognition of Fixed Assets Part of the year-end closing procedure may include a step to review all fixed assets currently on the books to see if any should be derecognized. Related Articles Fixed Asset Disposal Accounting How to Record the Disposal of Assets How to Write Off a Fixed Asset When to Derecognize an Asset

Accounting 40

Accounting Accounting 40

Accounting Tools

SEPTEMBER 11, 2023

Free cash flow per share measures the amount of cash spun off by a business. Related Articles Book Value per Share Dividend per Share Free Cash Flow Yield Market Value per Share Related Courses Business Ratios Guidebook The Interpretation of Financial Statements What is Free Cash Flow per Share?

Financial Statements 40

Financial Statements 40

Cloud Accounting Podcast

APRIL 19, 2023

57:50) - Blake co-wrote an article for CPA Practice Advisor (01:02:31) - Wrap up and where to reach us Need CPE? The M-Score is warning that the chance of fraud is the highest in over 40 years; Did KPMG fail to issue a critical audit matter for Silicon Valley Bank?;

CPA 96

CPA Accounting Accounting QuickBooks 96

Accounting Tools

MARCH 5, 2024

The ratio must be greater than 1:1, or the income property cannot generate sufficient funds to pay off the associated debt. The formula is to divide the net amount of tangible assets not needed to pay off current liabilities by the current balance of loans outstanding. The most common coverage ratios are noted below.

Financial Statements 40

Financial Statements Tax 40

Accounting Tools

AUGUST 28, 2023

Related Courses Business Combinations and Consolidations CPA Firm Mergers and Acquisitions Divestitures and Spin-Offs Mergers & Acquisitions How to Value an Acquisition Target Acquisition valuation involves the use of multiple analyses to determine a range of possible prices to pay for an acquisition candidate.

CPA 75

CPA Collections Accounting Accounting 75

Accounting Tools

OCTOBER 27, 2023

Fixed Assets Window Dressing Sell off those fixed assets with large amounts of accumulated depreciation associated with them, so the net book value of the remaining assets appears to indicate a relatively new cluster of assets. Window dressing is actions taken to improve the appearance of a company's financial statements.

Accounting 75

Accounting Accounting Financial Statements Accounts Receivable 75

Accounting Tools

OCTOBER 10, 2023

If the cost center ceiling later increases, the amount written off cannot be reinstated. Related Articles Discovery-Value Accounting Unit of Revenue Method Related Courses Oil and Gas Accounting What is the Ceiling Test? The ceiling test is a method used to keep the capitalized cost of a business from exceeding its underlying value.

Tax 40

Tax Accounting Accounting 40

Accounting Tools

JULY 15, 2023

When functional obsolescence occurs, an asset is disposed of and its remaining book value is written off. Related Articles Fixed Asset Impairment Accounting Impairment of Long-Lived Assets Write Down Related Courses Capital Budgeting Fixed Asset Accounting What is Functional Obsolescence?

Budgeting 40

Budgeting Computation Accounting Accounting 40

Accounting Tools

SEPTEMBER 30, 2023

The effective interest method is a technique for calculating the actual interest rate in a period based on the amount of a financial instrument's book value at the beginning of the accounting period. Related Courses Accounting for Bonds Accounting for Investments Corporate Finance What is the Effective Interest Method?

Corporate Finance 40

Corporate Finance Computation Accounting Accounting 40

Accounting Tools

JULY 8, 2023

The formula for calculating the periodic charge under straight line amortization is: ( Book value of intangible asset - Expected salvage value ) ÷ Number of periods Straight line amortization is the same as straight line depreciation , except that it applies to intangible assets, rather than tangible assets.

Auditing 40

Auditing Accounting Accounting 40

Accounting Tools

JULY 24, 2023

Related Courses Business Combinations and Consolidations CPA Firm Mergers and Acquisitions Mergers and Acquisitions How to Account for a Consolidation Consolidation accounting is the process of combining the financial results of several subsidiary companies into the combined financial results of the parent company.

Financial Statements 75

Financial Statements Accounting Accounting Payroll 75

Accounting Tools

JUNE 12, 2023

As an example of the information in a subsidiary ledger, the inventory ledger may contain transactions about receipts into stock, movements of stock to the production floor, conversion into finished goods , scrap and rework reporting, write-offs for obsolete inventory , and sales to customers.

General Ledger 75

General Ledger Bookkeeping Financial Statements Accounts Payable 75

Accounting Tools

JUNE 12, 2023

When acquiring property, acquisition costs can include surveying, closing fees, and paying off liens. This amount is considered to be the book value of an asset. Acquisition cost refers to the all-in cost to purchase an asset. The term can also refer to the cost to acquire a new customer.

Customer Service 40

Customer Service Auditing Tax Accounting 40

Accounting Tools

JANUARY 2, 2024

The excessive use of off-balance sheet and derivative transactions, as well as the over-use of technical language in disclosures are examples of black box accounting. Black box accounting is the deliberate use of excessively complex accounting transactions to hide the financial condition of a business.

Financial Statements 40

Financial Statements Accounting Accounting 40

Accounting Tools

JUNE 14, 2023

The amount of inventory shrinkage is therefore $50,000 ($1,000,000 book cost - $950,000 actual cost). The amount of inventory shrinkage is therefore $50,000 ($1,000,000 book cost - $950,000 actual cost). The inventory shrinkage percentage is 5% ($50,000 shrinkage / $1,000,000 book cost).

Billing 40

Billing Auditing Invoicing Accounting 40

Accounting Tools

JULY 21, 2023

When equipment in the fixed asset category is expected to be sold off or otherwise disposed of within one year, its book value is still classified as a long-term asset; even in this situation, it is still not classified as a current asset. Instead, it is classified as a long-term asset.

Auditing 40

Auditing Accounting Accounting 40

Accounting Tools

JUNE 11, 2023

Finally, the resulting book balance in the inventory account is compared to the actual ending inventory amount. The difference is written off to the cost of goods sold with a debit to the cost of goods sold account and a credit to the inventory account. The term is most commonly used by retailers.

Cost Accounting 75

Cost Accounting Accounts Payable Accounts Payable Bookkeeping 75

Accounting Tools

SEPTEMBER 10, 2023

In some cases where the volume of transactions would overwhelm the record keeping in the general ledger, transactions are shunted off to a subsidiary ledger , from which just the account totals are recorded in a control account in the general ledger. Terms Similar to General Ledger The general ledger is also known as the book of final entry.

General Ledger 40

General Ledger Financial Statements Record Keeping Bookkeeping 40

Gaviti

MARCH 21, 2023

While you should be careful to avoid spamming the customer, a reminder every few days should be enough to make it clear to the customer they need to pay off their invoice. Some customers might not have paid off their invoice because they are unable to use the current payment methods provided by your company. Make payment easy.

Accounts Receivable 78

Accounts Receivable Accounts Receivable Account Receivables Accounting 78

Stephanie Peterson

JULY 21, 2022

Managing Your Books By Yourself Money management is undoubtedly a crucial task and should be left for professionals to handle. Claiming "Charitable Contribution" Tax Deductions Although individuals are allowed to write off donations given to qualified charitable organizations on personal returns, businesses have different limitations.

Bookkeeping 52

Bookkeeping Petty cash Virtual Bookkeeping QuickBooks 52

Accounting Tools

OCTOBER 1, 2023

Related Courses Accounting for Inventory Ending inventory is a key requirement when a business is closing its books. It is needed to derive the cost of goods sold , which in turn is needed to calculate profits. Thus, without an accurate ending inventory figure, it is impossible to determine a firm’s profitability.

Accounting 40

Accounting Accounting 40

Cloud Accounting Podcast

JULY 20, 2023

12:00) - Codat shutting down most desktop APIs (15:14) - Pilot lays off 13% of its workforce (18:10) - Collective raises $50 million (19:49) - Are tax prep companies giving customers' personal information to social media giants? (12:00) Join us weekly for a roundup of accounting news, analysis, and interviews. Learn more at earmarkcpe.com.

Tax 40

Tax Collections Financial Statements Accounting 40

Accounting Tools

JUNE 17, 2023

The seller may use its accounts receivable as collateral for a loan, or sell them off to a factor in exchange for immediate cash. As soon as the tractor is delivered to the farmer, the business records an account receivable on its books, which is an asset. The amounts owed are stated on invoices that are issued to buyers by the seller.

Accounts Receivable 75

Accounts Receivable Accounts Receivable Account Receivables Accounting 75

Accounting Tools

MAY 19, 2023

A qualifying expenditure is initially classified as an asset , after which its cost is gradually depreciated over time to reduce its book value. Related Articles Basket Purchases Capital Expenditure Fixed Asset Accounting How to Write Off a Fixed Asset When to Stop Assigning Costs to a Fixed Asset Which Costs to Assign to a Fixed Asset

Computation 40

Computation Auditing Accounting Accounting 40

Accounting Tools

OCTOBER 6, 2023

When a fixed asset is eventually disposed of, the associated asset and accumulated depreciation amounts are credited and debited, respectively, in order to clear them off the books. Related Articles Depreciation Methods How to Calculate Depreciation Is Depreciation a Source of Funds?

Auditing 40

Auditing Accounting Accounting 40

Accounting Tools

JUNE 6, 2023

Related Articles Common Fraud Risk Factors Examples of Corporate Fraud Money Laundering Schemes Off the Books White Collar Crime Related Articles Common Fraud Risk Factors Examples of Corporate Fraud Money Laundering Schemes Off the Books White Collar Crime

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