The Tarpaulins

How To Prepare An Income Statement: Step-By-Step Guide

Content Objective of financial statements Pick a Reporting Period What is an income statement? IASB finalises amendments to IAS 1 regarding the classification of debt with covenants For a company manufacturing a product, or for a wholesaler, distributor, or retailer involved in the business of selling that product, the revenue from primary activities refers to […]

Total Cost in Economics: Definition & Formula Video & Lesson Transcript

Average cost curves are typically U-shaped, as Figure 7.4 shows. Average total cost starts off relatively high, because at low levels of output total costs are dominated by the fixed cost; mathematically, the denominator is so small that average total cost is large. In the average cost calculation, the rise in the numerator of total […]

Learn About Rules Of Debit And Credit

Content Common Debit and Credit Transactions Rules for Debit and Credit Practice Problems – Principles or Rules of Debit/Debit What Is the Journal Entry if a Company Pays Dividends With Cash? ( . Capital/Equity accounts: The “X” in the debit column denotes the increasing effect of a transaction on the asset account balance (total debits […]

Cash Basis Taxpayer: What it is, How it Works

Accrual basis accounting records income and expenses when they’re incurred, regardless of whether money has been exchanged yet. The cash basis of accounting records business transactions when cash changes hands. In other words, revenue is recorded in the actual period when a business receives cash, and expenses are reflected when cash is paid out. If […]

Bookkeeping Basics for Small Business Owners

Content Choose an accounting method What skills does a bookkeeper need? Chart of Accounts Business Credit Card You are not your business Set Aside an Emergency Fund for Major Expenses How To File Taxes If You’ve Lived… Also, well-documented and organized receipts can significantly help during audits. “Your software and your books are only as good as […]