Calculating retained earnings after a stock dividend involves a few extra steps to figure out the actual amount of dividends you’ll be distributing. Profits generally refer to the money a company earns after subtracting all costs and expenses from its total revenues. To simplify your retained earnings calculation, opt for user-friendly accounting software  with comprehensive...

For more cost cutting ideas, check out our guide of 25 ways to cut costs. If you’re having trouble hitting your break-even point or it seems unreachable, it’s time to make a change. If you’re a latecomer to a market, there might be too much supply, and you might not be able to break even...

Free samples or donations made to charity are treated as an advertising expense by the business. Drawings are personal withdrawals made by the owner and act as a reduction in the owner’s capital. All transactions are assumed and simplified for illustration purposes. Here’s everything you need to know about this essential building block of bookkeeping,...

These factors influence the estimation of the ADA, which directly impacts NRV. This ensures that your financial statements provide a true and fair view of your financial position. The amount of this write-down loss appears within http://ankerch.crimea.ua/page/9/ the cost of goods sold line item in the income statement. Equally as important, every party analyzing the...

It’s important to note that many of the steps in the accounting cycle are for those using the accrual accounting method. If your business uses the cash accounting method, you can still follow the cycle, but you can eliminate some of the steps such as adjusting entries. The eight-step accounting cycle process makes accounting easier...