Bookkeeping

There can be cases where a company may have a negative retained earnings balance. This is the case where the company has incurred more net losses than profits to date or has paid out more dividends than what it had in the retained earnings account. Retained Earnings is a term used to describe the historical […]

NCDs do not contain claims processing information like diagnosis or procedure codes nor do they give instructions to the provider on how to bill Medicare for the service or item. For this supplementary claims processing information we rely on other CMS publications, namely Change Requests (CR) Transmittals and inclusions in the Medicare Fee-For-Service Claims Processing […]

On the other hand, QuickBooks is a more straightforward accounting program that can be used for basic accounting tasks such as invoicing, payroll, and mileage tracking. Just because accounting software applications overlook the importance of accounts payable doesn’t mean that business owners should follow. QuickBooks Online has four pricing tiers and offers 50% off for […]

Each time you make a change, the invoice sample to the right of the screen will update to reflect your current choices. Be warned, you can find yourself spending a lot of time playing around with these options. And remember, you can always go back and update any of your chosen options, so don’t worry […]

Now, let’s use a T account to illustrate a transaction. T-accounts can also be used to track changes to the income statement, which allows for creating accounts for a company’s revenues (profits) and expenses (losses). These terms are used in every accounting document, including general ledgers, cash flow statements, trial balances, income statements, and balance […]

Before buying, investors need to ask themselves not only whether a company can make profits, but whether management can be trusted to generate growth with those profits. Retained earnings should boost the company’s value and, in turn, boost the value of the amount of money you invest into it. The trouble is that most companies […]

Though some benchmarks are set externally (discussed below), ratio analysis is often not a required aspect of budgeting or planning. For example, if the average P/E ratio of all companies in the S&P 500 index is 20, and the majority of companies have P/Es between 15 and 25, a stock with a P/E ratio of […]

After the dividends are paid, the dividend payable is reversed and is no longer present on the liability side of the balance sheet. When the dividends are paid, the effect on the balance sheet is a decrease in the company’s retained earnings and its cash balance. In other words, retained earnings and cash are reduced by the total value of the dividend. If a […]