Accounting

What does the invoice Term 2/10 net 30 mean? Simply put, 2/10 net 30 is a trade credit offered by the seller to the buyer for their purchase. If a buyer is able to pay an invoice in full within the first ten days, they will receive a 2 percent discount on the net amount. … Read more

What is the difference between a correcting entry and an adjusting entry quizlet? What is the difference between adjusting entries and correcting entries? Adjusting entries bring the ledger up to date as a normal part of the accounting cycle. Correcting entries correct errors in the ledger. Read more on quizlet.com In the accounting cycle, both … Read more

What is revenue in accounting? Revenue is the total amount of income generated by the sale of goods or services related to the company’s primary operations. Revenue, also known as gross sales, is often referred to as the “”top line”” because it sits at the top of the income statement. Income, or net income, is … Read more

What are the 4 financial statements required by GAAP? As per the GAAP, organizations should provide reports on their cash flows, profit-making operations, and overall financial conditions. To report these things, the most important GAAP financial statements are ? Balance Sheet, Income Statement, Shareholder’s Equity, and Cash Flow Statement. Read more on efinancemanagement.com A set … Read more

How do you take an owners draw? The most common way to take an owner’s draw is by writing a check that transfers cash from your business account to your personal account. An owner’s draw can also be a non-cash asset, such as a car or computer. You don’t withhold payroll taxes from an owner’s … Read more

Is goodwill considered a fixed asset? Goodwill is calculated and categorized as a fixed asset in the balance sheets of a business. Read more on www.freshbooks.com When a company is purchased by another company for a sum more than the fair market value of the assets and liabilities of the acquired company, goodwill is created. … Read more

How do you write off inventory when closing a business? The most basic formula for account for inventory is. Minus Cost of Goods Sold. Equals Ending Inventory (since you’re closing your business, this is zero at the end of 2015) Read more on ttlc.intuit.com Even though it can be a challenging and emotional process, closing … Read more

How do I record a capital expenditure in Quickbooks? To do that: Go to the Transaction menu. Select Add Transaction. Enter the amount and a brief description. Browse the Select a category menu and choose Other business expenses. If you have a receipt, you can drag and drop it into the form. When you’re ready, … Read more

What is one thing adjusting and correcting entries have in common? What is one thing adjusting and correcting entries have in common? Both can involve any combination of accounts. Both involve reversing one entry and preparing a new one. Both must be journalized and posted before closing entries. Read more on quizlet.com Recording, analyzing, and … Read more

Whats the difference between cash flow and Noi? Net operating income is a measure of profitability in real estate-the amount of cash flow a property generates after expenses. Operating cash flow is the money a business generates from its core operations. Net operating income is generally the same as operating income for a company. Read … Read more