Archive | Bookkeeping

What is Revenue? Definition, Formula, Calculation, and Example

Profit is the money you have after you account for expenses, debts, operating costs, and any additional income. Choosing which accounting method is largely up to the business and its financial team. However, large companies (income over $5 million per year) may need to use the accrual basis for tax purposes from the Internal Revenue […]

What is Long Term Liabilities

Content Why Do Companies Prefer Long-Term Debt? What Are Current Liabilities? Owner’s Equity Long-Term Liabilities: Definition, Examples, and Uses Examples of Other Long-Term Liabilities in a sentence The third part is equity or money put into the company by founders or private investors. These three accounts, or aspects of a company’s finances, cover nearly every […]

Gross Pay vs Net Pay: Whats the Difference?

Content How to Calculate Net Pay from Gross Pay? The Small Business Guide To Payroll Deductions What Goes Into Gross Pay Banking basics It’s called the Social Security wage base and is $160,200 for 2023. Any earnings above $160,200 aren’t subject to Social Security tax. Gross pay represents what you earn before taxes and all […]

Accumulated Depreciation An Asset or Liability?

Content Derecognition (retirements and disposals) Is Accumulated Depreciation a Credit or Debit? Accumulated Depreciation on a Balance Sheet We comment on the IASB’s proposed amendments to IAS 16 Accumulated Depreciation vs. Accelerated Depreciation Depreciation is recorded to tie the cost of using a long-term capital asset with the benefit gained from its use over time. […]