Statement of Retained Earnings: A Complete Guide

Content Statement of Retained Earnings Best Accounting Software for Small Businesses Overview: What is a statement of retained earnings? How Dividends Impact Retained Earnings If you own a very small business or are a sole proprietor, you can skip this step. You’ll also need to calculate your net income or net loss for the period […]


Content Special Consideration: Use in Accounting Step 2: Encumbrance What is encumbrance accounting? Explaining the encumbrance accounting process To relieve encumbrances manually: Many readers tell us they would have paid consultants for the advice in these articles. A restrictive covenant is an agreement that a seller writes into a buyer’s deed of property to restrict how […]

A Plain English Guide to the Straight Line Depreciation Method

Generally, you cannot claim a section 179 deduction based on the cost of property you lease to someone else. However, you can claim a section 179 deduction for the cost of the following property. The treatment of property as tangible personal property for the section 179 deduction is not controlled by its treatment under […]

BYPRODUCT English meaning

This avoids the need to purchase certain materials from outside suppliers. However, it is necessary to report accumulated manufacturing costs applicable to by-product inventory on the balance sheet. The revenue received from by-product sales is debited to cash (or accounts receivable). However, this shortcoming is removed to a certain degree in Method 1 (d), although […]