Recent Articles

2013

Accelerated Depreciation – An Explanation

12/17/2013

When it comes to depreciation, no two businesses are alike. Unlike traditional straight line depreciation where the asset value is cost out to depreciation expense in equal increments over a given life expectancy, accelerated depreciation expenses [...]

Current Liabilities Section of the Balance Sheet

12/10/2013

The current liabilities section of the balance sheet identifies those amounts due to third parties within the current year.  These include accounts payable, credit card accounts, accrued payroll, taxes, unearned revenue, deposits and those amounts [...]

Exempt and Non-Exempt Employees

12/09/2013

The Federal Labor Standards Act of 1938 sets the standards as it relates to Exempt and Non-Exempt employees and their associated compensation and work standards.  The Labor Standards Act is located in Chapter 20 Section 201 of the Federal Code.  [...]

Realized and Unrealized Gains or Losses

12/04/2013

When a product or investment is sold, the seller must realize a gain or loss from the transaction.  The actual sale or transaction will trigger the gain or loss realized.  In effect, the receipt of cash sets the threshold for a ‘REALIZED’ [...]

Point of Sale System – Introduction

12/03/2013

Almost all retail based operations require a Point of Sale (POS) System to properly record the customer and product activity.  So what is a Point of Sale System?  How is it set up?  What information should we get from this system?  How does a [...]

Estate Tax – The Basics

12/01/2013

Even after death, your heirs may still have to file a separate tax return for you with the Internal Revenue Service.  If your accumulated wealth is greater than $5.25 Million, then your executor must file Form 706 – The Estate Tax Return. This [...]

Chart of Accounts – Layout

11/27/2013

The goal of accounting is to record the economic activity of the business.  This is achieved by entering each economic transaction into a set of books.  The books are formatted to reflect the balance sheet and income statement items.  The chart [...]

Flake Cereal – The Story of Will Keith Kellogg

11/18/2013

As with many of life’s great success stories, an accident invents a new method or product.  In addition a lie generates huge amounts of wealth for the inventor.  It was no different for Will Keith Kellogg (WK). As a young man, WK started out as [...]

Insurance – Introduction to Business Insurance

11/15/2013

Insurance is a risk reduction tool used in our private and business lives.  It is founded on the basic premise that a large group of individuals will cover a catastrophic event for one of the members sometime in the future.  In general, the [...]
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