What Investments Are Considered Liquid Assets?

Bookkeeping
The aim of the regime is to simplify accounting for small businesses. When leaving the cash basis, any additional income arising from the move to the accruals basis will be spread over six years and taxed 1/6th in each year. Continuing the example of Brian’s garden furniture business; at the end of 2019/20 Brian has closing stock of four chairs which he paid £200 for in February 2020. Examples of demand deposit accounts include checking accounts and savings accounts. All demand account balances as of the date of the financial statements are included in cash totals. Does inventory count as income?Inventory isn't a tax deduction. Most people mistakenly believe that inventory is a line-item that they can deduct on their taxes. Inventory is a reduction of your gross receipts. This…
Read More

Functions Of Accounting

Bookkeeping
ContentFunctions Of AccountingDouble Entry And The Accrual Basis Of AccountingFinancial Accounting OutlineFinancial Reporting When managerial accounting is made for internal consumption there is no set of standards to compile that information. On the other hand, financial accounting must follow various accounting standards. You’ve probably heard people banter around phrases like “P/E ratio,” “current ratio” and “operating margin.” But what do these terms mean and why don’t they show up on financial statements? Listed below are just some of the many ratios that investors calculate from information on financial statements and then use to evaluate a company. As analysts, accountants may perform certain types of analysis using financial data that is used to assist in making business decisions. From deciding which kinds of supplies to order, payment of bills to payroll,…
Read More