Fixed asset accounting: Asset capitalizing rules, do's & don'ts
If an asset will have a residual value at the end of its service life that can be realized through sale or trade-in, depreciation should be calculated on cost less the estimated salvage value. Remember, the depreciable life is the term that the asset is used by the owner, but if the asset is not […]
What are direct materials?
For all the parts that have been procured to manufacture this particular computer, it is important to categorize them as direct material. For example, if gemstones are used in jewelry, they will be more costly than lower-quality stones. Accurate inventory information means avoiding ordering too much or too little of a material, which can lead […]
Consignment Accounting
Content Consignor Pays Expenses Treatment of Abnormal Loss Set up consignors as vendors and classes Community Create a free account to unlock this Template Balance Sheet Company And yes, Intuit should put more care in the choice of admins and talk to beginners as well, as beginners are their future.... I have typed the above […]
Debt-to-Equity Ratio: calculation, benchmark
Petersen Trading Company has total liabilities of $937,500 and a debt to equity ratio of 1.25. Debt to equity ratio is calculated by dividing total liabilities by stockholder’s equity. The D/E ratio can be classified as a leverage ratio (or gearing ratio) that shows the relative amount of debt a company has. As such, it is […]