Gain Contingency
The accounting for gain contingency is a potential or pending development thay may result in a future gain to the company. For example,...
Why is bookkeeping so crucial?
Many small business owners bootstrap their businesses. A small business owner does not realize how not keeping a good record of their...
A guide to treat contingent liability
As a business owner, you may have an adverse outcome in a tax court decision that will have an impact on your business. This event is...
Why Gross Margin is an important metric?
We are looking at the word gross margin. Gross margin is a company’s total revenue minus by the COGS (cost of goods sold), divide by the...
Is your business solvent?
As a business owner, one of your greatest concerns that you face is whether or not your business is going to survive. Many businesses...
Accounting Word of the Week: Deferred Charge
Today we are looking at deferred charge. A deferred charge is a prepaid expense that is regarded as an asset on a balance sheet. This...
Word of the Week: Explicit Cost
As a business owner, one of the easiest things to identify is explicit cost. The most common examples of explicit costs include wages,...