Categoria: Bookkeeping

  • Prime Cost Definition, Components, Formula, & Example

    Additionally, you can look for ways to become more efficient in your operations, such as automating some processes or investing in technology. Finally, you can also speak to your financial advisor or accountant for more specific advice on how to reduce your overall production costs. This formula shows that prime cost is the sum of…

  • 12 1 Identify and Describe Current Liabilities Principles of Accounting, Volume 1: Financial Accounting

    The portion of a note payable due in the current period isrecognized as current, while the remaining outstanding balance is anoncurrent note payable. For example, Figure 12.4 shows that $18,000 of a $100,000 note payable isscheduled to be paid within the current period (typically withinone year). The remaining $82,000 is considered a long-termliability and will…

  • The Corporate Form Of Organization

    The advantages and disadvantages of a partnership are basically the same as those of a proprietorship. Partnerships based on a relatively informal agreement are easy and inexpensive to form. General partners have unlimited liability for partnership debts, and the partnership terminates when a general partner wishes to sell out or dies. A corporation is recognized…

  • Full-Time Equivalent FTE & How to Calculate It

    To identify the FTE for part-time positions, divide the total number of part-time hours worked by the number of hours worked by one full-time worker. In our example, we will divide the total hours worked by Employees D and E by the number of hours worked by Employees A. To identify the FTE of part-time…

  • Bookkeeping 101: Bookkeeping Basics for Small Businesses

    Using the data you gain from keeping a ledger, your next step will be to generate and prepare financial reports for analysis. The major reports to include are the profit and loss, the balance sheet, and a cash flow analysis. Additionally, the aged accounts receivables and aged accounts payables reports are helpful in knowing which…