Petty Cash Accounting: Journal Entries & Reconciling Accounts
By assigning petty cash reimbursement journal entry the responsibility for the fund to one individual, the company has internal control over the cash in the fund. Security of the petty cash fund is also necessary to make sure that any unauthorized use or money abuse can be ditched. The...
Read moreMulti-Step Income Statement Format Example Financial Statements
Overall, using the multi-step income statement benefits companies seeking a more detailed and comprehensive overview of their financial performance. In a multi step income statement, business activities are separated into operating activities and non-operating activities. Non-operating items, including non-operating revenues, non-operating expenses, and non-operating gains (losses), are shown separately...
Read more1 4 Rules of Debit DR and Credit CR Financial and Managerial Accounting
Depending on the account type, an increase or decrease can either be a debit or a credit. Understanding the difference between credit and debit is needed. Revenue is the income that a company earns from its business activities, typically from the sale of goods and services to customers. Normal Balance...
Read moreWorking Capital: Definition, Formula, and Management
Streamline your Treasury Operations with HighRadius! Taken together, this process represents the operating cycle (also called the cash conversion cycle). The working capital cycle formula is days inventory outstanding (DIO) plus days sales outstanding (DSO), subtracted by days payable outstanding (DPO). Generally speaking, the working capital working capital ratio meaning...
Read moreFixed Assets in Business: Definition, Types, and Financial Impact
Fixed assets are recorded on the balance sheet and represent a significant portion of a company’s total assets. Fixed assets, also known as tangible assets, are long-term resources that a business owns and utilizes to generate revenue. These assets are not meant for sale but rather for continuous...
Read moreWhat is Annual Net Income and How to Calculate it?
Calculate Your Total Gross Income It’s also useful for financial and legal documents, so it’s a good idea to know your company’s annual net income. Never lie on a credit card application — even though the chance of an investigation is slim, being approved for a larger credit limit won’t...
Read moreWhat are FICA Taxes? Social Security & Medicare Taxes Explained
In 2025, a total of 15.3% of an employee’s wages should go to FICA taxes, with 12.4% specifically for Social Security and the remaining 2.9% going to Medicare. Today, FICA taxes include a Medicare tax along with the original Social Security tax (also known as Old Age, Survivors, and Disability...
Read moreWhat is straight-line depreciation: Formula & examples
The content on this website is provided “as is;” no representations are made that the content is error-free. Yes, financial solutions like Intuit Enterprise Suite can automate depreciation calculations, saving you time and reducing the risk of errors. According to the straight-line method of depreciation, your wood chipper will...
Read moreWhat is Capital? Definition of Capital, Capital Meaning
For small businesses starting on a shoestring, sources of capital may include friends and family, online lenders, credit card companies, and federal loan programs. Companies typically raise capital for their operations by selling ownership shares (equity capital) or by borrowing money(debt capital). A company’s capital structure is the amount of...
Read morePfizer expands cost cuts, tops quarterly profit estimates even as sales fall
To calculate the cost of sales for a service job, start by identifying all direct costs, including labor, materials, and subcontractor fees. Be sure to include expenses related to both work-in-progress and unbilled revenue. Profitability ratios, like the gross profit margin, return on sales, and net profit margin, are...
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