Category: Bookkeeping

  • How to Calculate Variance Calculator, Analysis & Examples

    In some cases, budget variances are the result of external factors which are impossible to control, such as natural disasters. When the amount of actual revenue is less than the standard or budgeted amount. Thus, actual revenues of $400,000 versus a budget of $450,000 equals an unfavorable revenue variance of $50,000. An unfavorable variance is…

  • What Are Relevant Costs?

    A special order occurs when a customer places an order near the end of the month, and prior sales have already covered the fixed cost of production for the month. Mr. Spoke’s business incurs many different costs as it produces bicycles. In order to understand how these costs impact profitability, businesses must determine the relationship…

  • Revenue vs Retained Earnings: What’s the Difference?

    Any net income not paid to shareholders at the end of a reporting period becomes retained earnings. Retained earnings are then carried over to the balance sheet, reported under shareholder’s equity. Because the adjustment to retained earnings is due to an income statement amount that was recorded incorrectly, there will also be an income tax…

  • Solved: Opening balance equity

    Before performing the process, I recommend consulting with your accountant to ensure your records are in ship-shape. Here’s how to enter an opening balance for accounts you create in QuickBooks. Learn how to enter an opening balance for a bank, credit card, and other types of accounts. Learning what the Opening Balance Equity in QuickBooks…

  • The GAAP Rules of Leasehold Improvement Depreciation

    An employer who allows an employee to use the employer’s property for personal purposes and charges the employee for the use is not regularly engaged in the business of leasing the property used by the employee. You must depreciate MACRS property acquired by a corporation or partnership in certain nontaxable transfers over the property’s remaining…