The adjusting entry is made when the goods or services are actually consumed, which recognizes the expense and the consumption of the asset. Deferred revenue is a liability for the business because it represents a future obligation to provide goods or services. Even though receiving prepayment may feel like an asset, it’s crucial to remember… Read More

Operating income does not include money earned from investments in other companies or nonoperating income, taxes, and interest expenses. Also excluded are any special or nonrecurring items, such as acquisition expenses, proceeds from the sale of a property, or cash paid for a lawsuit settlement. Examples of non-operating income include dividend income, asset impairment losses,… Read More

Examples of cost centers might include the marketing department, human resources, or the IT division. Cost centers are vital in tracking expenses and allowing managers to optimize operations within that area, using business optimization blueprint tools like Wafeq to ensure financial control and alignment with company objectives. Cost centers come in handy here because adding… Read More

Of course, rates and salary can vary depending on the person’s education, certification, skills, years of experience, and other factors. There are a couple of U.S. professional organizations that can certify those who want to become bookkeepers for small businesses. The Talent Acquisition team is dedicated to connecting people with exciting career opportunities and partnership… Read More

Absorption costing is in accordance with GAAP, because the product cost includes fixed overhead. Variable costing considers the variable overhead costs and does not consider fixed overhead as part of a product’s cost. It is not in accordance with GAAP, because fixed overhead is treated as a period cost and is not included in the… Read More