Browsing CategoryBookkeeping

Form 1099-B reports proceeds from broker and barter exchange transactions. Brokers use this form to report the sale of stocks, securities, and the like. Brokers must submit a 1099-B to each individual to report gains or losses what are 1099s for from transactions. Independent contractors used Form 1099-MISC in prior…

The net factor gives the average number of days taken by the company to clear the inventory it possesses. To understand how well they manage their inventory, we start reviewing their last fiscal year, and then we apply the inventory turnover ratio formula. Consequently, as an investor, you want to…

When entering an invoice, be sure to include all relevant information, including the vendor’s name, the items or services received, the price, and payment terms. Using accounting software is more efficient and accurate than manually recording information, optimal choice of entity for the qbi deduction especially for businesses with a…

Sometimes when a company wants to reward its shareholders with a dividend without giving away any cash, it issues what’s called a stock dividend. Your retained earnings account on January 1, 2020 will read $0, because you have no earnings to retain. It can reinvest this money into the business…

The cash flow balance in year zero is negative as it marks the initial outlay of capital. Therefore, the cumulative cash flow balance in year 1 equals the negative balance from year 0 plus the present value of cash flows from year 1. The discounted payback period is calculated by…