Accounting for Unearned Revenue As a company earns the revenue, it reduces the balance in the unearned revenue account (with a debit) and increases the ba...

Closing entries take place at the end of an accounting cycle as a set of journal entries. The closing entries serve to transfer the balances out of certai...

Which accounting concept should be considered if the owner of a business takes goods from inventory for his own personal use? Sales revenue should be reco...

To confirm that a CPA has an active license, you may contact the State Board of Accountancy where the individual obtained his or her license. This list of...

Cash flow also affects your company’s ability to grow. Positive cash flow gives you more capital to spend on expenditures like a new machine or a second l...

Each adjusting entry usually affects one income statement account (a revenue or expense account) and one balance sheet account (an asset or liability acco...

Accumulated depreciation is the total amount an asset has been depreciated up until a single point. Each period, the depreciation expense recorded in that...

Rent expense is typically allocated between the selling and administrative, and production portions of the income statement. Alternatively, the entire amo...

When you have a business, you have direct and indirect costs. Tracking these expenses is key to having up-to-date books, receiving tax deductions, and mak...

Record an owner’s contribution or capital investment in your… Step 1: Set up an equity account. Before you can record a capital investment, you need to se...