Category Archives: Bookkeeping

What Is Unearned Revenue? A Definition and Examples for Small Businesses

It is treated as a liability because the revenue has still not been earned and represents products or services owed to a customer. As the prepaid service or product is gradually delivered over time, it is recognized as revenue on the income statement. Unearned revenue is a crucial concept for businesses and individuals alike. It […]

Find Out Your Company’s Net Income

In accordance with accrual accounting reporting standards, the net income metric is the revenue left over once all operating and non-operating costs have been accounted for. The disadvantage of net income is that it shows only the company’s short-term performance. If this figure is a factor that uses by Board as the performance measurement for […]

Selling Price Formula What is the Selling Price Formula? Examples, Derivation, Formula

You can then select the fairest selling price for your item by using this price point in addition to other factors like competitor prices. In other words, you need a solid pricing strategy that aptly evaluates your products’ prices. This post helps us learn about selling prices and many other related concepts. Here we have […]

What Is Normal Balance In Accounting

Interest Revenues account includes interest earned whether or not the interest was received or billed. Interest Revenues are nonoperating revenues or income for companies not in the business of lending money. For companies in the business of lending money, Interest Revenues are reported in the operating section of the multiple-step income statement. Revenues and gains […]

How do I calculate full-time equivalent FTE hours?

If 0.75 FTE is considered full-time in a company, such employees may qualify to apply for the Public Service Loan Forgiveness (PSLF) program, as stated above. With the required inputs in place, we can arrive at approximately 52.40 FTEs by dividing the total hours worked by all employees by the total number of available work […]