Bookkeeping

It’s important for small business owners to understand accounting basics so they can manage their finances effectively. For example, small business owners should be aware of certain accounting principles, methods, and definitions. Load your PayPal app with your cards and banks, and skip entering your info every time you pay.…

Marginal cost is different from average cost, which is the total cost divided by the number of units produced. Costs of production (which include fixed costs as well as variable costs) increase with more production because producing more units means buying more raw materials and/or hiring more workers. The change…

Under the cash basis accounting method, a company accounts for revenue only when it receives payment for the products or service it provided a customer. Professionals such as physicians and lawyers and some relatively small businesses may account for their revenues and expenses on a cash basis. The cash basis…

So, under these methods, there is always 3 days between February 28 and March 1, because each month counts as 30 days, including February, even though February has either 28 or 29 days. By the same reasoning, there are 25 days between January 15 and February 10, even though there…

The idea is that when the $1 changes hands, so to speak, the party on the receiving end will then go on to spend it, and on and on. Each year’s budget deficit adds to the national debt, but Congress caps the debt limit. Congress set the debt limit, also known as…

The idea is that when the $1 changes hands, so to speak, the party on the receiving end will then go on to spend it, and on and on. Each year’s budget deficit adds to the national debt, but Congress caps the debt limit. Congress set the debt limit, also known as…

The 5% rate of return might be worthwhile if comparable investments of equal risk offered less over the same period. It accounts for the fact that, as long as interest rates are positive, a dollar today is worth more than a dollar in the future. A more simple example of the net…