You will need to complete Form SS-5, Application for a Social Security CardPDF. You also must submit evidence of your identity, age, and U.S. citizenship or lawful alien status. For more information please see the Social Security Administration website. ITIN holders must verify their identity through the video chat process and will need a valid … Read more
Start with a free account to explore 20+ always-free courses and hundreds of finance templates and cheat sheets. The invested capital is generally a more detailed analysis of a firm’s overall capital. Return on capital employed is also commonly referred to as the primary ratio because it indicates the profits earned on corporate resources. To … Read more
For example, say you place a one-time order with a supplier and receive the goods, but they don’t send the bill right away. This liability is non-routine because this is a one-time infrequent purchase, and it’s accrued because you haven’t received the bill yet. A customized product such as manufacturing machinery purchased on credit terms … Read more
At the end of each accounting cycle, adjusting entries are made to charge uncollectible receivable as expense. Revenue is the income generated by a business through the sale of goods or services. Contra expense, on the other hand, is an expense why business budget planning is so important that is offset against income in the … Read more
To illustrate double-entry accounting, imagine a business sends an invoice to one of its clients. An accountant using the double-entry method records a debit to accounts receivables, which flows through to the balance sheet, and a credit to sales revenue, which flows through to the income statement. It may be handled by a bookkeeper or … Read more
The contribution margin is the foundation for break-even analysis used in the overall cost and sales price planning for products. It is important to assess the contribution margin for break-even or target income analysis. The target number of units that need to be sold in order for the business to break even is determined by … Read more
Finally, we’ll explain what these statements communicate in the business world. The accumulated retained earnings balance for the previous year, which is the first line item on the statement of retained earnings, is on both the balance sheet and statement of retained earnings. In the final step of building the roll-forward schedule, the issuance of … Read more
By improving product quality, manufacturers can reduce material costs while reducing warranty expenses and increasing customer satisfaction. Reducing waste helps companies save on both the cost of raw materials and disposal fees. Direct materials are the raw materials that are used to create a product. For example, if you were making a shirt, the direct … Read more
No matter how great your products are, you’re bound to have purchase returns at some point or another. The original purchase must be reduced on the books by the amount returned by using the purchases returns and allowances account. In the case of purchase returns, it can be seen that goods are returned to the … Read more
Did you know there’s more than one way to reconcile your accounting records? But for all methods, if you’re not using reconciliation software, the first step will likely be importing account transactions from your ERP or accounting software into an Excel spreadsheet. The bank discovered that the mysterious transaction was a bank error, and therefore, … Read more