However, it won’t be enough to cover a new version of the same car unless your insurance policy includes new car replacement coverage. If the insurer totals your car, they will pay you the vehicle’s actual cash value (ACV). The actual cash value is how much the car was worth just before the loss. From …
How Salvage Value Is Used in Depreciation Calculations Read More »
It contains all essential financial records about the property management business. The more detailed your chart is, the better “cheat sheet” you’ll have. On site, property managers tend to rely on the cash-based accounting system as it keeps everything simple. Our goal is to provide effective management services that ultimately will result in a well …
By using double-entry accounting, you can be sure all of your transactions are following the rules of the accounting equation. On the next line, the account to be credited is indented and the amount appears further to the right than the debit amount shown in the line above. If you’re not sure whether your accounting …
In this example the supplier is giving up 2% of the invoice amount in order to be paid 20 days early. While you can earn interest on your savings, if you borrow money then you may have to pay interest on top of what you borrow. You will often have to pay interest on things …
As a result, the variable overhead expenses must be included in the calculation of the cost per unit to ensure accurate pricing. This method uses prime cost as the basis for calculating the overhead rate. Prime Cost is nothing but the total of direct materials and direct labor cost of your business. Utilities such as …
Overhead: What It Means in Business, Major Types, and Examples Read More »
Enterprises with an economic interest in mineral property or standing timber may recognize depletion expenses against those assets as they are used. Depletion can be calculated on a cost or percentage basis, and businesses generally must use whichever provides the larger deduction for tax purposes. A higher percentage of the flat monthly payment goes toward …
