Category: Bookkeeping

P-Card transactions, which allow employees to purchase goods and services on behalf of the company, introduce unique challenges in expense recognition. The core principle requires that expenses be recorded at the time they are incurred, irrespective of the actual cash payment timing. Expense recognition involves various methods, such as specific identification, weighted average, FIFO (First…

A sinking fund is a type of fund that is created and set up purposely for repaying debt. The owner of the account sets aside a certain amount of money regularly and uses it only for a specific purpose. Often, it is used by corporations for bonds and deposits money to buy back issued bonds…

If you’re a solopreneur, you’re probably also doing a lot of your own accounting, or at least your bookkeeping. One way to make this job a lot easier on yourself is to have a small business checking account. One reason I love my payroll software is that it sends me an email receipt every month…

A sunk cost is a cost that has occurred and cannot be changed by present or future decisions. As such, it is important that this cost is ignored in the decision-making process. A firm may choose to sell a product in its current state or process it further in hopes of generating additional revenue. Kerosene,…

Tech startups frequently rely on external funding from angel investors, venture capitalists, and crowdfunding. Our account management team is staffed by CPAs and accountants who have, on average, 11 years of experience. It is used as a proxy for cash flow while being focused on the income statement. For example, you will hear bankers, private…

At the heart of the issue lies the concept of gross profit versus net profit. Gross profit for a movie is typically a measure of the revenue the movie generates in box office and other sales, minus the cost of shooting, production and other expenses involved with creating the film (typically the film’s budget). Net…

At the heart of the issue lies the concept of gross profit versus net profit. Gross profit for a movie is typically a measure of the revenue the movie generates in box office and other sales, minus the cost of shooting, production and other expenses involved with creating the film (typically the film’s budget). Net…

But the outstanding options — whether in the money or not — do not affect diluted share count. Again, they are anti-dilutive; if they were added to the diluted share count, loss per share would improve slightly, to $0.95. The diluted share count differs from the basic share count in that it adds shares that…

In fact, if you’re going to invest in stocks, these skills are very helpful. But it’s also important to understand that these calculations aren’t the ultimate answer. They can’t tell you everything about the company and they shouldn’t be used on their own. Yes, EPS numbers are important, but there are some vertical analysis common…

The exercise of those options would add 1 million shares to the basic count. In theory, however, ABC could acquire 500,000 shares https://www.bookkeeping-reviews.com/ with the $10 million in proceeds. First, the exercise price of the options or warrants may be above the trading price. Example of EPS They might look for a growth stock whose…