Bookkeeping

After this detailed analysis was completed, and after the comparison was presented, the business owner was finally aware of how their expenses were determined and what the potential savings could be. Before jumping into how to manage your treasury in the most effective way, it’s vital you fully understand what this term means. It also […]

However, the total depreciation allowed is equal to the initial cost minus the salvage value, which is $9,000. At the point where this amount is reached, no further depreciation is allowed. Straight-line amortization works just like its depreciation counterpart, but instead of having the value of a physical asset decline, amortization deals with intangible assets

If, for example, increasing production from 200 to 201 units per day requires a small business to purchase additional equipment, then the marginal cost of production may be very high. In contrast, this expense might be significantly lower if the business is considering an increase from 150 to 151 units using existing equipment. Variable costs

The public and politicians alike blamed a lack of transparency in corporate operations for intensifying if not outright causing the financial crisis. Since then, additional legislation such as the Sarbanes-Oxley Act of 2002 extended public-company disclosure requirements and government oversight of them. As mandated by the SEC, disclosures include those related to a company’s financial condition, operating results, and management