September 09, 2019
Charles Lutwidge
What is the accounting equation?
In the formation of accounting data, a basic accounting equation is used for financial statement no matter if you are just a small business or a multimillion company. The Italian mathematician Luca Pacioli formulated a basic accounting equation formula in...
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September 09, 2019
Charles Lutwidge
What are Retained Earnings?
One of the characteristic features of a market economy is the competition of most companies among themselves. The most important economic indicator showing the effective operation of a company is retained earnings. The positive dynamics of this indicator, along with...
September 09, 2019
Charles Lutwidge
What is an enrolled agent, and does your business need one?
Individuals and businesses are required to file their tax returns every year. Doing it yourself, in most cases, is too complicated and time-consuming. This is where financial advisors and tax preparers come in to help. However, not every tax preparer...
September 09, 2019
Charles Lutwidge
What is bookkeeping?
When your average Jane or Joe hears the term bookkeeping, they may only imagine a bespectacled accountant scribbling complex mathematical formulas amid piles of bills, receipts, and checks. But it’s actually easy to understand what bookkeeping is all about. Bookkeeping...
September 09, 2019
Charles Lutwidge
Unearned Revenue and How It Is Accounted for in Business
Before we try to explain the unearned revenue, let’s see what revenue means. Revenueis funding in cash or another form received by the business as a result of its economicactivities. There are three different revenue recognition situations: Accrual revenue –...
September 09, 2019
Charles Lutwidge
The Accounting Equation May be Expressed as Assets = Liabilities + Owner’s Equity
The main goal of any business is to maximize profits, and how well a business thrives depends on what economic resources are available to it. A simple equation can be used to represent these resources (assets) and show where they...
September 09, 2019
Charles Lutwidge
The Accounting Equation – Your Guide to Important Accounting Equations
The accounting equation can have many forms and a variety of uses in bookkeeping. You should not ignore any accounting equation if you want your business to be successful, as this equation is the foundation of your company’s balance sheet,...
September 09, 2019
Charles Lutwidge
Statement of Retained Earnings
Financial statements, including the statement of retained earnings, are an essential part of financial accounting of business operations and many of them are required by law. They are created on a monthly, quarterly, and yearly basis according to generally accepted...
