These programs offer built-in functions and formulas that make simple process, minimizing the potential for human error. We often use a weighted average to calculate the so-called weighted GPA. To find the weighted average, multiply each number by its respective weights and get the sum. Once you have all the data, you’ll need to know […]

Adjustment entries can also impact a business’s stock-based compensation expenses. Adjustment entries can impact a business’s cash flow by affecting the timing of cash inflows and outflows. For example, if an adjustment entry is made to increase accounts receivable, this will increase the amount of cash that the business expects to receive in the future.

Amortization Expense Journal Entry Example, Definition, and RecordingRead More »

If you cannot find a nonprofit’s Statement of Activities, you can also ask the organization for a copy. Nonprofits unwilling to share this information should be questioned about their reasons for lack of transparency. Since many of your expenses will cover salary, insurance, rent, utilities, events, technology, etc., you may find that your restricted funds

Comprehensive guide for nonprofit statement of activitiesRead More »

Having a zero balance in these accounts is important so a business can compare performance across periods, particularly with income. It also helps the business keep thorough records of account balances affecting retained earnings. Revenue, expense, and dividend accounts affect retained earnings and are closed so they can accumulate new balances in the next period.

How, when and why do you prepare closing entries?Read More »

His work has been featured in outlets such as Keypoint Intelligence, FitSmallBusiness and PCMag. Jeff is a writer, founder, and small business expert that focuses on educating founders on the ins and outs of running their business. Specific inventory tracing is only used when all components attributable to a finished product are known. How to

What Is The FIFO Method? FIFO Inventory GuideRead More »