Types of Liability Accounts List of Examples Explanations Definition

Bonds are essentially contracts to pay the bondholders the face amount plus interest on the maturity date. These debts usually arise from business transactions like purchases of goods and services. For example, a business looking to purchase a building will usually take out a mortgage from a bank in order to afford the purchase. A…

Statement of Cash Flows: Free Template & Examples

Our writing and editorial staff are a team of experts holding advanced financial designations and have written for most major financial media publications. Our work has been directly cited by organizations including Entrepreneur, Business Insider, Investopedia, Forbes, CNBC, and many others. Our goal is to deliver the most understandable and comprehensive explanations of financial topics…

Statement of Cash Flows: Free Template & Examples

Our writing and editorial staff are a team of experts holding advanced financial designations and have written for most major financial media publications. Our work has been directly cited by organizations including Entrepreneur, Business Insider, Investopedia, Forbes, CNBC, and many others. Our goal is to deliver the most understandable and comprehensive explanations of financial topics…

How to Figure Out Direct Labor Cost Per Unit Chron com

Labor, both direct and indirect, is one of the largest costs most companies incur. When a company is tracking the costs of specific projects, the labor costs must be considered because they are a significant influence in the overall project. The direct labor cost is the amount of payroll expenses paid to direct laborers on…

Journal Entries Guide

For each account affected by the transaction, identify the exact amounts for which the account was increased or decreased. (We’ll outline more about the difference between debits and credits in journal entry accounting later in this post). Financial transactions are foundational to any business—and so is tracking them. And, whether you create them manually or…

Journal Entries Guide

For each account affected by the transaction, identify the exact amounts for which the account was increased or decreased. (We’ll outline more about the difference between debits and credits in journal entry accounting later in this post). Financial transactions are foundational to any business—and so is tracking them. And, whether you create them manually or…

Allowance for Doubtful Accounts: Guide + Calculations

Suppose that a lender estimates $2 million of the loan balance is at risk of default, and the allowance account already has a $1 million balance. Then, the adjusting entry to bad debt expense and the increase to the allowance account is an additional $1 million. According to generally accepted accounting principles (GAAP), the main…