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Bookkeeping

Understanding the Accounting Equation Formula

Examples of assets include cash, accounts receivable, inventory, prepaid insurance, investments, land, buildings, equipment, and goodwill. From the accounting equation, we see that the amount of assets must equal the combined amount of liabilities plus owner’s (or stockholders’) equity. The income statement is the financial statement that reports a company’s revenues and expenses and the …

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The Best Online Accounting Firms for Small Business

Even if a bookkeeping service has all of these add-ons, they can be expensive, so be sure you understand the total cost before choosing a service. The best bookkeeping services handle your target tasks without breaking your business’s what is a profit center and cost center for balance sheet items budget, integrate with your accounting …

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Subledger vs General Ledger: What’s The Difference? : Planergy Software

These are more narrowly focused ledgers that contain more detailed information about the various master accounts in the general ledger. But simple ledger accounts may have a hard time keeping up with a business as it grows in complexity and scale. There may be a large volume of items to organize or complex transactions that …

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Essential Bookkeeping Basics Every Bookkeeper Needs

If a method or practice is changed, or if you hire a new accountant with a different system, the change must be fully documented and justified in the footnotes of the financial statements. This principle ensures that any company’s internal financial documentation is consistent over time. It compels accountants to honor and use all active …

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Is accounts receivable an asset or revenue?

Notes receivable and accounts receivable both show up on your balance sheet as assets. Notes receivable does too, but this category only includes debts that have a promissory note attached. Debts entered as notes receivable are usually paid back over a longer period. Managing and monitoring accounts receivable is essential for maintaining a healthy cash …

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What Is Notes Payable?

Get instant access to video lessons taught by experienced investment bankers. Learn financial statement modeling, DCF, M&A, LBO, Comps and Excel shortcuts. You can set the default content filter to expand search across territories. These materials were downloaded from PwC’s Viewpoint (viewpoint.pwc.com) under license. Join our community to get finance, operations, and procurement resources straight …

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High-Water Mark vs Hurdle Rate: What’s the Difference?

Whereas something like a proposed gold mine in a developing country would have a large risk premium due to substantial uncertainty from commodity prices, geopolitical concerns, and operational risks. This is usually calculated by blending together a company’s funding sources such as debt, preferred stock, and common equity. At a minimum, a project should deliver …

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