Gross Margin: Formula, Definition, and How to Calculate

While the gross margin only accounts for a company’s COGS, the net margin accounts for COGS plus all indirect, interest, and tax expenses. It’s considered the best way to evaluate the strength of a company’s sales performance by assessing how much profit is generated compared to the costs of production. Suppose we’re tasked with calculating […]

What are Goods in Transit in Accounting Transit Inventory

Content Who Pays the Freight Cost When the Terms Are FOB Destination? agree to the Terms and Conditions. Revolutionizing your logistics is just a few steps away. Mastering Inventory Holding Costs: A Comprehensive Guide Effectively Managing In-Transit Inventory Without it, it becomes difficult to understand how much and when inventory is required to keep your […]

Bookkeeping Keeping for Nonprofit Organizations

Content What statements and forms are most important to nonprofit bookkeeping? Step 2: Create a nonprofit chart of accounts Own Multiple Businesses? Have Them All On QuickBooks®. Here’s why… Sign up for the Dummies Beta Program to try Dummies’ newest way to learn. How to Do Bookkeeping for a Nonprofit Have a Separate Bank Account […]

EA vs CPA: The Difference Is in the Details

Content Enrolled Agent Salary vs CPA Salary Achievable Coupon: 10% Off Series 7 Exam Review EA vs CPA: What’s the difference? Get $100 Off School of PE PE Review Course We will also discuss the kinds of work that each one performs on a daily basis, as well as their respective salaries and job prospects. […]

Business Taxes Internal Revenue Service

If you owned the stock longer than 60 days, it’s called a “qualified dividend,” and the IRS then will tax it on a sliding scale. That means the higher your dividend the more you’ll pay in taxes. If your qualified dividend is lower than $38,601 (like in our example above), you wouldn’t pay taxes. But […]

Accounting Equation Overview, Formula, and Examples

Capital essentially represents how much the owners have invested into the business along with any accumulated retained profits or losses. The capital would ultimately belong to you as the business owner. Before getting into how the accounting equation helps balance double-entry bookkeeping, let’s explain each element of the equation in detail. However, due to the […]

Married Filing Jointly: Definition, Advantages, and Disadvantages

Content If you aren’t (or weren’t) married, associate your first child with… Support First, does your organization have a non-discrimination statement that includes sexual orientation? Who qualifies as a dependent? Living together Qualifying as Head of Household You Provide More Than 50% Support Many of the same questions asked in the previous section about the […]

Allowance for Doubtful Accounts

Content 3 Receivables – before the adoption of ASU 2016-13 How to Use the Allowance for Doubtful Accounts Income Statement Method for Calculating Bad Debt Expenses How the percentage of sales method works Other Methods What type of account is an allowance for doubtful accounts? What Does Allowance For Doubtful Accounts Mean? For example, if the […]