An implied warranty is a basic warranty that comes with almost all consumer products and is the basic understanding that a product will function as advertised. One important step in maximizing warranty benefits is to register your product warranty. This ensures that you are eligible for warranty services and benefits,…

Karin (first author) witnessed a similar scene every time she visited Ms. Wilson’s classroom. Daybooks, also known as Journals, represent a group of transactions. In modern accounting software systems, daybooks can represent a collection what is a daybook of transactions from a given day or a collection of transactions from a…

Then, on February 28th, when you receive the cash, you credit accounts receivable to decrease its value while debiting the cash account to show that you have received the cash. Since the actual goods or services haven’t yet been provided, they are considered liabilities, according to Accountingverse. Metrics like “RPO…

It reflects your actual earnings and helps assess financial performance. Sales revenue indicates sales performance but does not consider costs or expenses related to operating the business, such as debts, additional income streams, and operating costs. Both templates provide a practical and efficient way to forecast your sales revenue, enabling…

For example, if a corporation has 100,000 shares outstanding, a 2-for-1 stock split will result what are the primary components of stockholders’ equity? in 200,000 shares outstanding. Capital stock is a term that encompasses both common stock and preferred stock. Paid-in capital (or contributed capital) is that section of stockholders’…

At the end of each accounting period, net income (or loss) is transferred from the income statement to the retained earnings account through a closing entry. In the above format, the heading part of the statement is somewhat similar to that of an income statement. The first line exhibits the…

Instead of developing a company that is temporarily unable to pay, the bondholder is given an incentive to sue for bankruptcy immediately, which makes it eligible for sale to a bad bank. That was when it became clear that some of the biggest U.S. financial institutions were sitting on a…

I have a very step-by-step process in terms of working with clients. Wave is one of the first steps in terms of sending an estimate so they can see exactly what’s included and how much it’s gonna cost. And then once they agree to it, turning that estimate into an…

There are a number of inventory management best practices and risk mitigation strategies that can help a business with write-down protection. The nature and amount of the write-down will be recorded in footnotes to financial statements. Similarly, a clear record of the write-down must appear in income statements and other…