Category: ACCOUNTING

Operating Leases on Balance Sheet

Leases allow businesses and individuals to access and utilize assets while making regular lease payments, providing flexibility and avoiding significant upfront capital investment. It is a contractual agreement between a lessor and a lessee, where the lessor grants the lessee the right to use an asset in exchange for periodic …

Cash Flow From Assets: Formula, Calculation, Definition, Examples, Sources

Cash flows refer to the movement of money into and out of a business or individual’s finances. They can fall into operating, financing, and investing cash flows. Similarly, cash flow statements provide a snapshot of these cash inflows and outflows, helping assess financial health and liquidity. The primary source of …

Pro Forma Balance Sheet: Example, Template in Excel, What It Is, Purpose, Definition, Sample, Format

The balance sheet is crucial as it provides a comprehensive overview of a company’s financial position. It is the primary tool for assessing the company’s stability, financial health, and overall worth. By analyzing the balance sheet, stakeholders gain insights into the company’s assets, liabilities, and shareholders’ equity, enabling them to …

How to Calculate Overtime For Semi Monthly Payroll

For many employers, semi-monthly payroll is an efficient method for paying their employees. However, calculating overtime pay under this method can be complex. It’s essential to get the calculations right to avoid legal issues and ensure employees are paid fairly. However, it’s not that difficult once it’s understood – it’s …

Revised Depreciation: Formula, Definition, Method, Equation

Depreciation refers to the systematic allocation of the cost of a tangible asset over its estimated useful life. It is an accounting method used to recognize and distribute the expense of a resource over time. Depreciation helps match the asset’s cost with the revenue it generates and considers factors such …

Are Expenses Liabilities? What Are the Differences?

In the realm of accounting, it is crucial to distinguish between expenses and liabilities, as both terms play distinct roles in financial reporting. Expenses and liabilities are fundamental concepts that reflect different aspects of a company’s financial position. In this blog post, we will delve into the differences between expenses …

How to Balance a Balance Sheet

A balance sheet is a financial statement that presents a snapshot of a company’s financial position at a specific moment. It has three main components: assets, liabilities, and shareholders’ equity. Assets represent what the company owns, liabilities represent its obligations, and shareholders’ equity represents the residual interest of shareholders in …