Category Archives: Bookkeeping

Twitty’s Books began its 2018 fiscal year with $330,000 in sellable inventory. By the end of 2018, Twitty’s Books had $440,000 in sellable inventory. Its primary service doesn’t require the sale of goods, but the business might still sell merchandise, such as snacks, toiletries, or souvenirs. If inventory increases, it suggests fewer sales, leading to […]

Get the 411 on how to record a COGS journal entry in your books (including a few how-to examples!). There are other inventory costing factors that may influence your overall COGS. The CRA refers to these methods as “first in, first out” (FIFO), “last in, first out” (LIFO), and average cost. The formula for calculating […]

Cost structure refers cafeteria plans to the various types of expenses a business incurs and is typically composed of fixed and variable costs. Fixed costs are costs that remain unchanged regardless of the amount of output a company produces, while variable costs change with production volume. Activity-based costing (ABC) identifies overhead costs from each department and […]

Any price above this minimum selling price represents incremental profit for the company. The telecom operator currently spends $400 on newspaper ads and $100 on maintaining the company’s website every month. The marketing director estimates that it will spend approximately $1,000 on television ads every month. The company will also need to hire a millennial […]

A rental activity held by a closely held corporation or a personal service corporation may be subject to the passive activity loss rules. Corporations can generally electronically file (e-file) Form 1120, related forms, schedules, and attachments; Form 7004 (automatic extension of time to file); and Forms 940, 941, and 944 (employment tax returns). If there […]

The Courts have responded to the OMB Control Number arguments with the following arguments. Individual Income Tax Return has contained the OMB Control number since 1981.[51] 2) As ruled in a number of cases, the absence of an OMB Control number does not eliminate the legal obligation to file or pay taxes. Form 1040-NR is […]