Search results
Nov 21, 2023 · This means that the return is recorded as a negative number directly into the sales revenue account. The sales return account is useful because it helps businesses to track returns and allowances.
depreciation on the income tax return will mean smaller cash payments for income taxes in the earlier years and higher cash payments for income taxes in later years. To learn more, see
Jul 1, 2023 · Diversification is a risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique contends that a portfolio constructed of different ...
A liability is an obligation of a company that results in the company’s future sacrifices of economic benefits to other entities or businesses. A liability, like debt, can be an alternative to equity as a source of a company’s financing. Moreover, some liabilities, such as accounts payable or income taxes payable, are essential parts of day ...
A contra revenue account that reports 1) merchandise returned by a customer, and 2) the allowances granted to a customer because the seller shipped improper or defective merchandise. This of course will reduce the seller’s accounts receivable and is subtracted from sales (along with sales discounts) to arrive at net sales. Must-Watch Video.
Jan 5, 2024 · The calculation is the accounting profit from the project, divided by the initial investment in the project. The formula for the accounting rate of return is as follows: Average annual accounting profit ÷ Initial investment = Accounting rate of return. In this formula, the accounting profit is calculated as the profit related to the project ...
Apr 10, 2023 · Shrinkage is the loss of inventory that can be attributed to factors such as employee theft, shoplifting, administrative error, vendor fraud, damage in transit or in store, and cashier errors that ...
