So whatever the worth of assets and liabilities of a business are, the owners’ equity will always be the remaining amount (total assets MINUS total liabilities) that keeps the accounting equation in balance. All assets owned by a business are acquired with the funds supplied either by creditors or by owner(s). In other words, we can say […]

On the QuickBooks ProAdvisor Program website, there’s a button you can click to sign up for QuickBooks Online Accountant. It’s free to sign up and create your profile, and no credit card and other sensitive information is required. Learn how to start a QuickBooks ProAdvisor certification course and become a certified ProAdvisor. It’s a whole […]

The problem is, the inflow and outflow of cash doesn’t always line up with the actual revenue and expense. Say, for example, a client prepays you for six months’ worth of work. Under cash accounting, revenue will appear artificially high in the first month, then drop to zero for the next five months. This account […]

By including all costs in the cost of a product, managers can better understand the true cost of production and make informed decisions about pricing, profitability, and resource allocation. If a company has high direct, fixed overhead costs it can make a big impact on the per unit price. Companies that use variable costing may […]

As of June 2024, IFRS guidelines are used in more than 100 countries, including most major economies in Europe, South America, and Asia. The opposing viewpoint holds that GAAP practices create a transparent standard that facilitates direct comparisons and accurate analysis. Non-GAAP accounting techniques deviate from these standards by definition, leading some professionals and stakeholders […]