Liabilities impact negatively on the financial net worth of a business or company, while assets impact positively and increase the financial net worth of a business or company. Categories of…
In some cases, this may mean your liability transforms into an asset, like a mortgage balance becoming full home equity. In other cases, satisfying a liability simply means you have…
The amount of sale tax will be recorded as the current liability on the balance sheet. Likewise, create a separate column for sales returns to record a reduction in sales…
Likewise, the journal entry here doesn’t involve an income statement account as both prepaid rent and cash are balance sheet items. Hence, the journal entry above is simply increasing one…
The base period or base year refers to the year in which an index number series begins to be calculated. Growth analysis is a commonly used way to describe company…
