Every business has to prepare different financial statements, being a statement of profit and loss, a balance sheet, and a cash flow statement as the most significant ones. The expenses incurred, revenues earned, payables, receivables, and other items are recorded and presented in meaningful information by the financial statements. Different accounting standards, tax reporting, and …
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 »
An audit is a process in which an auditor examines a subject matter against specified criteria. During this process, the auditors use various audit procedures to obtain assurance regarding the subject matter. Several types of audits may exist. Usually, audits refer to external or internal audits conducted by independent auditors. These processes include examining a …
What is a Field Auditor? (Responsibilities, Qualification, and More) Read More »
Businesses earn income by business operations, and individuals earn income by doing jobs. Similarly, taxes are the main source of income for government bodies. Public services, legislature, establishment, and all government services available to citizens are funded by the taxes collected from the public and business entities. Tax is a legal obligation of every citizen …
Definition: Deferred tax asset arises when differences exist between the taxable income and actual income of a company. In other words, it is the amount of money the IRS owes to you because your taxable income was higher than your actual income for a particular accounting period. Hence, you paid higher taxes than you reported …
Deferred Tax Assets – Definition, Example, and Why the Deferred Tax Asset Arises Read More »
Definition: Deferred tax liability can be defined as an income tax liability to the IRS for having tax payable less than what you actually incurred due to temporary differences between accounting and taxable income. It is a line item booked under the liability section of a company’s balance sheet. In other words, deferred tax liability …
Deferred Tax Liability: Definition, Example, And Calculation Read More »
