Category Archives: Bookkeeping

What Is Accounting? Definition and Basics, Explained

My Accounting Course  is a world-class educational resource developed by experts to simplify accounting, finance, & investment analysis topics, so students and professionals can learn and propel their indirect tax services careers. Expense accounts, on the other hand, represent the resources used to generate income. Assets are resources that the company can use to generate […]

How to Close a Dividend Account

Whether you’re posting entries manually or using accounting software, all revenue and expenses for each accounting period are stored in temporary accounts such as revenue and expenses. The income summary account is only used in closing process accounting. Basically, the income summary account is the amount of your revenues minus expenses. You will close the […]

Effective Annual Interest Rate: Definition, Formula, and Example

Although compounding can be done an infinite number of times, it should be kept in mind that there is a certain limit to the compounding effect and beyond which the phenomenon ceases to happen. That type of compounding is known as continuous compounding for which the effective interest rate is expressed as – ei, […]

11 3 Explain and Apply Depreciation Methods to Allocate Capitalized Costs Principles of Accounting, Volume 1: Financial Accounting

It is also possible to deduct the accumulated depreciation from the asset’s cost and show the balance on the balance sheet. This method is used only when calculating depreciation for equipment or machinery, the useful life of which is based on production capacity rather than a number of years. Straight line depreciation is the easiest […]

Expense Reporting: What Is It, Templates, and How To Fill A Report

Leveraging software like Expensify to streamline your will elevate the accuracy, efficiency, and ease of your reporting processes for everyone involved. If you’re interested in automating but still on the fence, check out our expense report calculator to determine if it’s worth it for your team. Creating an itemized expense report builds accountability into […]