How to Properly Account for Security Deposits?
Accounting for security deposits can feel overwhelming, especially if you’re new to the process. Security deposits are required by landlords when tenants move into a rental property and serve as …
Accounting
Five Components of Internal Control (Guidance)
Internal control is a process that organizations use to ensure the accuracy and completeness of their financial statements. There are five components of internal control: control environment, risk assessment, control …
A Step-by-Step Guide to Recording Journal Entries for Bond Issuance
Understanding how to record a journal entry for bond issuance is an important skill for any business owner. Bonds are a type of debt financing that allows businesses to borrow …
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What is the Amortization of Prepaid Expenses, and How Do You Account For It?
Amortization of prepaid expenses is a process by which businesses allocate the cost of a prepaid expense over its useful life. This means that instead of expensing the entire cost …
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Understanding Treasury Stock on the Balance Sheet
Treasury stock is a term used to describe a company’s own shares that have been repurchased and are held by the company. It is important to understand where treasury stock …
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Step by Step on How to Account for Repairs and Maintenance Expenses
As a business owner or manager, you’re always looking for ways to cut costs and improve your bottom line. One area where you can make a significant impact is in …
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How To Account for Accrued Vacation Under GAAP? All You Need To Know
When it comes to accruing vacation time under GAAP, there are a few things you need to keep in mind. Here are the key points you need to remember when …
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How to Record Journal Entry for Disposal of Fixed Assets? Explained
If your business disposes of any fixed assets, you’ll need to record the journal entry for it correctly. This includes debiting the relevant asset account and crediting the cash account. …
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What is the non-diversifiable risk? Definition, Example, and More
What is the non-diversifiable risk? This term describes the inherent risk in investments that cannot be diversified away. Non-diversifiable risk is also known as “unsystematic risk” and refers to factors …
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6 Advantages of the Activity-Based Depreciation Method
The depreciation method you choose for your business can greatly impact your tax liability and overall financial picture. Here are six advantages to keep in mind if you’re considering the …
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