How do you record a promissory note in a journal entry?
The borrower records the note by debiting the cash account and crediting the notes payable account. The rest of the notes payable formula includes that in...
Category: Updates
What are the advantages of management by objectives MBO?
Management by Objectives (MBO): Advantages and Limitations Improved Performance: Greater Sense of Identification: Maximum Utilization of Human Resources: ...
How do I work out VAT from gross amount?
To calculate VAT having the gross amount you should divide the gross amount by 1 + VAT percentage. (i.e if it is 20%, then you should divide by 1.20), the...
What can share premium be used for?
It is a statutory reserve which forms part of a company’s non-distributable reserves. Subject to the companies articles, the share premium account may be:...
Would an individual firm continue to produce in the long run if economic profits are zero?
The process of firms leaving Industry B and entering A will continue until firms in both industries are earning zero economic profit. That suggests an imp...
How do I file my company tax return Australia?
You can lodge your tax return: with a registered tax agent. online with myTax if you’re a sole trader. with standard business reporting enabled software i...
What are included in comprehensive income?
Comprehensive income includes net income and unrealized income, such as unrealized gains or losses on hedge/derivative financial instruments and foreign c...
How do you record bad debt expense and allowance for doubtful accounts?
Bad Debt Allowance Method Estimate uncollectible receivables. Record the journal entry by debiting bad debt expense and crediting allowance for doubtful a...
What accounting standards do nonprofits follow?
Both nonprofits and government agencies must follow GAAP, the Generally Accepted Accounting Principles. GAAP’s main objective is ensuring that financial i...
Does adjusting entries affect balance sheet?
Each adjusting entry has a dual purpose: (1) to make the income statement report the proper revenue or expense and (2) to make the balance sheet report th...
