Posts Tagged ‘Accounting’
Examples of Liabilities
Liabilities appear on a company’s Balance Sheet and are what the company owes. Liabilities can be Accounts Payable, Notes Payable, Payroll Payable, Rent Payable, Taxes Payable or any other payable.
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Basic Accounting Formula collaborative post
A couple of weeks ago I posted about the Basic Accounting Formula here and James Ong, Host from the QB Community, contacted me about collaborating on a post for the QB Community. In case you didn’t know, the QB (QuickBooks) Community is a great online resource where you can learn about QuickBooks, Accounting, and Small Business. The…
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Examples of Assets
Assets appear on a company’s Balance Sheet and are what the company owns. Assets can be Cash, Accounts Receivable, Equipment, Inventory, Land, Buildings, or even Intangible items.
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What is an Expense?
Expenses are what a company has incurred or used up. Expenses are shown on a Profit and Loss Report also known as an Income Statement.
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What is Revenue?
Revenue is what a company has earned. Sometimes this is referred to as Sales or Income. Revenue is shown on a Profit and Loss Report also known as an Income Statement.
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January 2018 Update
It’s hard to believe that January is over! Like most accountants, I was extremely busy and there’s more work ahead. Since it’s tax season, I’ve been getting a lot of requests to help folks with getting their QuickBooks® files ready for taxes. This typically involves bank and credit card reconciliations, account analysis, and financial statement…
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What is Owners’ Equity?
Owners’ Equity appears on a company’s Balance Sheet and is the amount owners have put into the company less what they’ve taken out, plus net income for the life of the company. Per the basic accounting formula, Owners’ Equity must equal Assets minus Liabilities.
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What are Liabilities?
Liabilities appear on a company’s Balance Sheet and are what the company owes. Per the basic accounting formula, Liabilities have to equal Assets minus Owners’ Equity. The company is obligated to pay their liabilities.
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What are Assets?
Assets appear on a company’s Balance Sheet and are what the company owns. Per the basic accounting formula, Assets have to equal Liabilities plus Owners’ Equity. If the company desired, they could sell the Assets, since they own them.
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The Basic Accounting Formula
The basic accounting formula is: Assets = Liabilities + Owners’ Equity. This formula can also be written as:Liabilities = Assets – Owners’ Equity. Additionally, this formula can be written as: Owners’ Equity = Assets – Liabilities. When looking at financial reports for a company, you’ll notice that this formula represents the Balance Sheet. When looking…
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