Retained Earnings: Debit or Credit Balance?

Accounting in one form or another had existed for a very long time and appeared around the time when people began to engage in trade. Accounting is an integral part of entrepreneurial activity. It is essential that accounting is maintained accurately... Read more

Is Unearned Revenue a Liability?

Unearned revenue represents income received by the organization in the reporting period but related to future reporting periods. In the composition of unearned revenue is a receipt for goods or services, the delivery of which will last a long time or... Read more

Cash Disbursement Journal: How to Create

What is a cash disbursement journal?This type of journal is used to record funds coming out of your company before they are included in the general ledger. However, not every payment can be called disbursement. This term is applied to payments made w... Read more

Adjusting Entries: Explanation and Types

What are adjusting entries in accounting?It’s easy to see when adjusting entries are made. They’re necessary when you want to make changes in journal entries. They are especially important if we’re talking about already recorded numbers in specific a... Read more

Sales Journal: Definition and Examples

What are sales journals in accounting?Another widespread accounting tool is called a sales journal. The company needs this journal to track all credit sales made. After a transaction is made, all the details and results should be filled out in this j... Read more

Normal balance: definition and meaning

What is a normal balance? One of the basic accounting terms is a normal balance. It’s used to describe a balance that an account should have. The balance itself can be debit or credit, whereas an account can be active or passive. The thing is that a... Read more

How to fill out w-4

How to fill out W-4 for the first timeIf you’re looking for a job in the USA, you’re more than likely will have to fill out this form. It’s created by the IRS to determine the amount of taxes that they’ll need to withhold from you. Filing this form m... Read more

Accruals and Deferrals

For the purpose of forming the financial result of the organization's activities for the reporting period, income and expenses are differentiated between the reporting periods. Income and expenses related to this reporting period are reflected in the... Read more

What is an Income Statement

The income statement is a document that is showing information about profit (income), loss (expenses), as well as the difference between the above indicators of cash for a certain period. You can use the report to analyze changes in the volume o... Read more

Restricted retained earnings

A dividend is a distribution of profits by a corporation to its shareholders. When a corporation earns a profit or surplus, it is able to pay a proportion of the profit as a dividend to shareholders. Any amount not distributed is taken to be re-inves... Read more