Unearned revenue represents a business liability that goes into the current liability section of the business’ balance sheet. No, unearned revenue is not an asset but a liability, and you record it as such on a company’s balance sheet. Industries…

The monetary unit assumption is a part of Generally Accepted Accounting Principles (GAAP) because it provides a sound basis for recording and reporting financial transactions. This principle allows businesses to compare their financial performance with other organizations using the same…

If you take a lump sum, you have more control over your money right now. You can choose to invest it into a retirement account or other stock option to generate a return. Lottery winnings are not considered earned income,…

If the consideration received exceeds the fair value of the goods or services provided, the excess should be recognized as a liability or deferred income. Unearned Sales results in cash exchange before revenue recognition for the business. Furthermore, that will…

Navigating the intricacies of estimated tax payments is vital for freelancers, self-employed individuals, and anyone… Do you need to complete a business tax extension application, IRS Form 7004? Navigating the complexities of business tax filing and compliance is essential for…

Outstanding shares are the total number of shares of a company’s stock that are currently owned by investors, including institutional investors, insiders, and the general public. These shares are issued by the company and how to find the number of…

Subscription-based bookkeeping services are transforming the way businesses manage their finances, offering predictable pricing, scalability, and automation-driven efficiency. Instead of paying hourly or hiring in-house staff, businesses can now access professional bookkeeping on a fixed monthly or annual subscription model.…

A chart of accounts (COA) is a blueprint for organizing every financial transaction that Accounting Periods and Methods happens in your law firm. It’s essentially a roadmap that gives you a clear view of how money is moving in and…