In accounting, the mnemonic “DEALER” is used to remember how debits and credits affect different types of accounts: D – Dividends (or Draws for sole proprietorships and partnerships) E – Expenses A – Assets These accounts normally have a debit balance. L – Liabilities E – Equity R – Revenues These accounts normally have a credit balance. Using this […]
What Does DEALER or DEALOR Stand for in Accounting? Read More »
When a hurricane strikes, have you ever stopped to consider the costs? These powerful storms leave more than just physical damage behind. They also bring serious financial challenges that can linger long after the winds have died down. What if there was a way to manage these financial hurdles more easily? Picture a step-by-step guide
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Accounting has become the most significant and basic function of any business operating in any industry, irrespective of business size. Either in-house or outsourced, every business and company needs an accountant to manage the financial data. But was accounting always there? It’s a question for many. The answer is that accounting has always existed in
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There are certain expectations and standards for students when they are choosing a career path and degree after high school. Many people and career guidance experts suggest going with your passion and pursuing a field that fits your interests. However, on the other side, many people exist who suggests going for a degree or career
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Every year, you have to pay income taxes, sales taxes, and a lot of other business taxes. It’s complex to understand the taxation system and how individuals are taxed by IRS. However, the complexity doesn’t undermine the need to understand taxes and how the taxes are applied. When we talk about businesses, payroll taxes are
What Wages Are Subject To Social Security and Medicare IRS Tax? Read More »
Investors invest in companies expecting returns and income. Usually, companies pay dividends which can constitute earnings for investors. On top of that, some companies may also provide capital gains through increasing share prices. However, investors must first investigate the company to ensure it can offer those returns. The primary source they can use is the
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Companies need to follow accounting principles and guidelines while reporting financial information. Generally accepted accounting principles (GAAP) and International Financial Reporting Standards (IFRS) provide principles and procedures to guide the preparation of financial statements. IFRSs are standardized accounting principles adopted by countries across the world. Historically, there have been locally accepted accounting regulations. However, the
Principles Of Financial Accounting (The Key Principle You Should Kow) Read More »
Basic Principles of Accounting are important guidelines that ensure that all businesses have financial statements prepared similarly. In this regard, it is rudimentary to understand that these guidelines are mostly unanimously applied across accounting bodies of all countries, which follow the IFRS (International Financial Reporting Standards). What is meant by Accounting Principles? Accounting Principles are
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Definition of Materiality Materiality is one of the most important concepts in accounting. It is simply a measure of the impact of any financial misstatement on the decision-making ability of the given user. In this regard, it is important to note the fact that materiality is not a single ballpark figure. In fact, it is
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What is Cost Accounting? Cost Accounting is referred to as a branch of managerial accounting, which mainly aims to encapsulate all costs within a company, by assessing variable costs along with each step of production. It is considered to be a metric that helps companies to make informed decisions that are backed by reliable quantitative
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