Depreciable personal property Definition

You might own and operate a cab company and you purchase a car for your fleet. You can claim a portion of that $30,000 over five years—the depreciation time span or “class life” that the IRS assigns to vehicles. This works out to a depreciation deduction what is depreciable property of $6,000 a year. During […]
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Closing Entries: Step by Step Guide

Do you want to learn more about debit, credit entries, and how to record your journal entries properly? Then, head over to our guide on journalizing transactions, with definitions and examples for business. Now, it’s time to close the income summary to the retained earnings https://quick-bookkeeping.net/ (since we’re dealing with a company, not a small […]
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Interest Expenses: How They Work, Coverage Ratio Explained

The changes in inventory, trade receivables and trade payables (working capital) do not impact on the measurement profit but these changes will have impacted on cash and so further adjustments are made. For example, an increase in the levels of inventory and receivables will have not impacted on profit before tax but will have had […]
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Retained Earnings: Everything You Need to Know

Net sales are calculated as gross revenues net of discounts, returns, and allowances. Though gross revenue is helpful in accounting for, it may be misleading as it does not fully encapsulate the activity regarding sale activity. For example, a company may post record-level sales; however, a major recall that resulted in 10% of all sales […]
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