ADP RUN articles

Over the course of those 10 years, the value of the $15,000 you spent on the coolers gradually leaves the company as the equipment ages and wears down. You recognize this by recording a regular depreciation expense — say, $1,500 a year for the 10 years. Asset capitalization doesn’t mean you never “expense” the cost of an asset.
Capitalization is an accounting rule used to recognize a cash outlay as an asset on the balance sheet—rather than an expense on the income state […]

One of the biggest disadvantages of hiring a part-time bookkeeper is that they provide only partial support in an area of business that requires a lot of attention and detail. You will need to dedicate some of your time to audit their work on an on-going basis, and you may still be required to do more of the high-level accounting work, such as projecting and reporting. This is an added burden to any company owner who is also responsible for many other key areas of the business. Hiring a full-t […]

Add the change in PP&E to the current-period depreciation expense to arrive at the company’s current-period CapEx spending. Here, Capex refers to capital expenditures, and ΔPP&E refers to the change in the value of property, plant and equipment. The accounting process of identifying, measuring, and estimating the costs relating to capital expenditures may be quite complicated.
L) ‘Depreciation’ is normally used in relation to Hard assets, ‘amortization’ w […]

Classes like SampleClass are objects of type, which you can confirm by calling type() with the class object as an argument or by accessing the .__class__ attribute. Sinking fund redemption requires the issuer to adhere to a set schedule while redeeming a portion or all of its debt. On specified dates, the company will remit a portion of the bond to bondholders. A sinking fund helps the company save money over time and avoid a large lump-sum payment at maturity. A sinking fund has bonds issued […]

This is a frequent customer that presents their punch card as a payment. This is an ongoing transaction since your business has a contract (the punch card) with the customer to allow them ten visits at a discounted rate. This is a complex transaction since the customer will need to make payments for the next year to complete the transaction. Lastly, a business transaction is recognized by two accounting principles.

This is also a credit transaction because you have not received the payment in […]

Also, a credit memo assumed by inexperience can create a problem in the existing balance sheet. If this is enabled by invoicing software, it reduces the aggregate dollar amount following the number of invoices outstanding. Even though the buyer receives something from the seller when returning a purchased item, a credit memo is not the same as a cash refund. A credit memo in Canada is a document issued by a seller of goods or services to a buyer that reduces the amount owed to the seller. A cr […]