Category: Bookkeeping

Sales tax is a consumption-based tax that is indirectly charged on the consumer at the point of final purchase of a good or service. The indirect feature of the tax means that the consumer bears the burden of the tax, however it’s collected and transferred to authorities by the seller. The most popular type of… Continue reading How to Calculate Sales Tax

Because Secured bonds are guaranteed to have some form of repayment, these coupon rates are lower. Resultantly the bond issuer pays less to borrow money by issuing https://www.quick-bookkeeping.net/how-to-write-invoice-emails-that-get-paid-fast-and/ these bonds than they might if they borrowed in another way. The lower interest payments also help lower the risk that issuers will fail to repay them.… Continue reading Understand the Security Types of Corporate Bonds

To calculate retained earnings, combine the net earnings a company has generated from its profit and loss statement. Although retained earnings provide crucial insights into a company’s ability to generate profits and reinvest in its operations, they are not without limitations. Therefore, when examining retained earnings on a balance sheet, it’s important to consider other… Continue reading How to calculate retained earnings formula + examples

As a result, the company will experience a gain known as “funded surplus” as long as it earns the required return on its planned assets to cover any growth in pension obligations. Comprehensive income is the sum of a company’s net income and other comprehensive income. Over 1.8 million professionals statement of comprehensive income use… Continue reading Statement of Comprehensive Income Benefits and Example with its Uses

The two key reports that bookkeepers provide are the balance sheet and the income statement. The goal of both reports is to be easy to comprehend so that all readers can grasp how well the business is doing. Bookkeeping is broadly defined as the recording of financial transactions for a business. It’s a key component… Continue reading Bookkeeping 101: Bookkeeping Basics for Small Businesses

Net interest expense is one type of non-operating expense, but it’s listed as a line item in a multi-step financial statement. After noting their gross income, taxpayers subtract certain income sources such as Social Security benefits and qualifying deductions such as student loan interest. Although the terms are sometimes used interchangeably, net income and AGI… Continue reading Net Income: Formula, Definition, Explanation, Example, and Analysis