The equity section of the balance sheet is where the shareholder’s claims to assets are reported. The main contra equity account is treasury stock, which is the balance of QuickBooks all stock repurchased by the company. When a company repurchases shares, it increases the fractional ownership of all remaining shareholders. And why stop at just…
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This means that Paula can pay all of her current liabilities using only current assets. In other words, her store is very liquid and financially sound in the short-term. She can use this extra liquidity to grow the business or branch out into additional apparel niches. The net working capital formula is calculated by subtracting…
We recommend QuickBooks Online (“QBO”) as the right bookkeeping software for startups and high-growth small businesses. It’s the leading small business accounting software in the US for small businesses, and interfaces nicely with other automated systems like payroll. Deferred Revenue is when a client pays you ahead of you delivering a service. For example, if you charge…
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The four basic steps involved in the bank reconciliation process are described below. Reconciling your bank statements won’t stop fraud, but it will let you know when it’s happened. In huge companies with full-time accountants, there’s always someone checking to make sure every number checks out, and that the books match reality. In a small…
This would reduce the amount of bile that lingers in the gallbladder, lowering the risk of stone formation. Liver dysfunction can disrupt the normal flow of bile, a substance produced by the liver and stored in the gallbladder. This disruption can contribute to the formation of gallstones and other gallbladder problems. Alcohol can have both…
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