Electricity Cost – Fixed Cost Or Variable Cost? The cost of electricity is a major factor for both residential and commercial customers. Is it better to choose a fixed rate or variable rate when it comes to electricity costs? This article will explore the pros and cons of both options so that readers can make … Read more
Is Depreciation Expenses A Direct Or Indirect Cost? Depreciation is a decrease in the value of an asset over time, caused by a variety of factors, and accounted for through estimates of the asset’s useful life. This decrease in value is the result of use, wear and tear, obsolescence, or unfavorable market conditions. Depreciation is … Read more
Is Depreciation Expenses A Fixed Or Variable Cost? Depreciation is a non-cash operating activity that is used to systematically allocate an asset’s depreciable amount over its useful life. The depreciable amount is the asset’s purchase cost minus its salvage value or other revaluation amounts. Depreciation is quantified using accounting principles and assumptions based on the … Read more
Office Supplies: Assets, Liabilities, or Expenses? Copy paper, toner cartridges, and stationery items can be viewed as assets because they are used in the normal course of business and can be used again. Likewise, miscellaneous desk supplies, such as pens, pencils, and paperclips, can be viewed as an asset because they are typically used multiple … Read more
Net Purchases In Accounting Net purchases in accounting refer to the total value of goods and services purchased by a business, minus any discounts or returns. This figure is used to determine the amount of expenditure the company has made during a given period. Purchases are recorded in the company’s books of accounts at the … Read more
Is The Wages Expense Account An Asset, Liability, or Equity? The wage expense account is not the assets, liability, or equity. It is the expense account on the income statement. This expense is typically recorded in the expense portion of the income statement and may include the payroll taxes and benefits paid to employees. Such … Read more
What Are The Benefits of A CFA For A CPA? What is CFA? The Chartered Financial Analyst (CFA) designation is a globally recognized credential awarded to professionals in the finance industry who demonstrate a mastery of the relevant skills and knowledge required to excel in their field. The CFA charter is highly respected and considered … Read more
Paid Interest Expenses Present In The Statement Of Cash Flow Interest expense is a financial cost incurred by a business when borrowing funds from lenders. For businesses in the United States, mortgage interest is tax-deductible. However, in Canada, the deductibility of interest depends on the purpose of the loan. If the loan is used for … Read more
What Causes Inventory Turnover Ratio To Increase Or Decrease? Inventory turnover ratio is a measure of how efficiently a company uses its inventory to generate sales. It is calculated by dividing the cost of goods sold by the average inventory value during the period. This ratio is useful for comparing similar companies, especially for retailers. … Read more
What Is A Business Reference? A business reference is a recommendation provided on behalf of a client, vendor, or other business associate or contact to verify the quality of a contract company’s work to a new client. The reference should provide an honest assessment of the company’s offerings to properly recommend them to other clients … Read more