Tag: Current Liabilities
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Billings in Excess
‘Billings in excess’ is a construction industry financial term referring to the dollar value of charges to customers in excess of the costs and profits earned.
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Bookkeeping – Estimating Employee Benefits (Lesson 84)
Employee benefits consist of vacation, sick time, retirement benefits, healthcare and other de minimus benefits. As a function of accrual accounting these benefits are estimated and posted as a deferred liability in the accrued payroll section of the current liabilities section of the balance sheet. This lesson explains how to calculate the respective benefits and…
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Cash Flow From Operations – Understanding Cash Flow (Part II)
To understand the cash situation, the cash flow from operations is an additional report included in financial statements to basically convert the accrual basis balance sheet and income statement into a cash basis report.
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Working Capital Management – Production and Sales Flow
There is no single management style to address the multitude of working capital cycles existing in the various business sectors and the underlying industries. Taking raw resources and turning them into consumer goods has different time frames depending on the item produced.
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Bookkeeping – Franchise Fee and Revenue Taxes (Lesson 57)
This lesson focuses on the accounting procedure for franchise fees and the formula used for revenue taxes. What is interesting is that in some states, one affects the other.
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Bookkeeping – Loan Accounting (Lesson 54)
Almost every small business borrows money. The most common reason is to purchase a fixed asset of some sort. The amount borrowed is most often a long-term liability.
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Bookkeeping – Cash Disbursements (Lesson 45)
Cash disbursements is the process of remitting payment to vendors, suppliers and third party contractual obligations. Better managed offices pay bills in regular cycles including weekly and monthly obligations.
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Bookkeeping – Purchases Via Credit Cards (Lesson 42)
It is more common in small business, especially small contractors, to buy materials using credit cards. Often the credit card accounts are the owner’s personal accounts.
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Bookkeeping – Tracking Purchases (Lesson 41)
In business purchases describes the process of acquiring the necessary goods and materials for operations.
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Bookkeeping – Tracking Sales Tax (Lesson 40)
Many businesses especially retail have to collect sales tax as a function of their legal mandate from state governments. In effect the business is a collection agent for the state.