Furthermore, when there are no proceeds from the sale of an asset and the asset is fully depreciated, you debit the accumulated depreciation account and credit the fixed asset account. Also, for the sale of land, if the buyer pays the seller exactly what he/she paid for the land, there will be no loss or…
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This article will serve as a guide to understanding the DDB depreciation method by explaining how it works, why it can be beneficial, and its potential downsides. Yes, it is possible to switch from the Double Declining Balance Method to another depreciation method, but there are specific considerations to keep in mind. Businesses choose to…
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We should allocate this $2,000 to wherever those direct materials are physically located. However, if $2,000 is an insignificant amount, the materiality guideline allows for the entire $2,000 to be deducted from the cost of goods sold on the income statement. Thus, favorable and unfavorable variances signify two opposite situations. The below-mentioned points explain the…
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Sometimes, there could be a discrepancy in your data accuracy simply because of a typo during entry. Other times the variance could be the result of something more complicated like price or volume being different from what was budgeted. Understanding where the variance took place in your budget can help you keep track of your…
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Questions such as “Do you understand the church bookkeeping, chart of accounts, and designated funds? You are probably not alone if the daily bookkeeping process is your most stressful time of the week. Whether you are the church bookkeeper, treasurer, or human resources professional, managing the church finances can be challenging. Learn about how Jitasa’s…
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It also includes more advanced tasks such as the preparation of yearly statements, required quarterly reporting and tax materials. Simply put, hiring a virtual assistant is going to be more cost-flexible than hiring a full-time bookkeeper. The Dennison CPA team has been providing financial guidance to churches and other Christian organizations throughout the U.S. since…
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For example, balances over $5,000 may have a lower interest rate or earn no interest at all. Lastly, I want to take note of the Securities and Exchange Commission’s adoption last month of a requirement for broader central clearing for cash and repo transactions in the Treasury market. While broader central clearing won’t cure all…
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For example, balances over $5,000 may have a lower interest rate or earn no interest at all. Lastly, I want to take note of the Securities and Exchange Commission’s adoption last month of a requirement for broader central clearing for cash and repo transactions in the Treasury market. While broader central clearing won’t cure all…
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Alternatively, include the negative cash in the definition of cash (rather than in accounts payable). In doing so, you combine the cash overdraft with other cash (that with positive balances) in the cash flow statement. The beginning and ending cash–in the cash flow statement–should include the negative cash amounts. Harold Averkamp (CPA, MBA) has worked…
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Alternatively, include the negative cash in the definition of cash (rather than in accounts payable). In doing so, you combine the cash overdraft with other cash (that with positive balances) in the cash flow statement. The beginning and ending cash–in the cash flow statement–should include the negative cash amounts. Harold Averkamp (CPA, MBA) has worked…
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