Bookkeeping

Credits & Deductions for Individuals Internal Revenue Service

Content What Is the Social Security Tax? Tax Policy Claiming work expenses: First, choose a deduction Qualified Nonresident Sales Amounts Expended to Improve Consumers’ Efficiency of Energy Continuing education and certifications A simplified home office deduction claims $5 per square foot up to a maximum of 300 square feet, for a $1,500 deduction. In fact, …

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Cash and Cash Equivalents Financial Accounting

Companies frequently hold cash and cash equivalents to facilitate smooth business operations. Also, the financial instrument must have a low credit risk to meet the company’s short-term cash needs. A firm should be able to quickly liquidate the cash equivalent without concerns about a significant material loss to the product. This asset class typically includes …

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Direct Labor Cost Variance Managerial Accounting

If it’s zero, it means no variance exists between the actual hours and standard hours for the specific activity level. Nonetheless, the interpretation of positive and negative results from the direct labour efficiency variance is below. The direct labour efficiency variance provides insights into the performance of direct labour employees. Similarly, it offers companies the …

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12 3 Define and Apply Accounting Treatment for Contingent Liabilities Principles of Accounting, Volume 1: Financial Accounting

There are sometimes significant risks that are simply not in the liability section of the balance sheet. Most recognized contingencies are those meeting the rather strict criteria of “probable” and “reasonably estimable.” a contingent liability that is probable and for which the dollar amount can be estimated should be One exception occurs for contingencies assumed …

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