Bookkeeping

Accounting Equation Assets, Liabilities, Owners Equity

For every business, the sum of the rights to the properties is equal to the sum of properties owned. Our mission is to empower readers with the most factual and reliable financial information possible to help them make informed decisions for their individual needs. Our goal is to deliver the most understandable and comprehensive explanations of financial topics using simple writing complemented by helpful graphics and animation videos. At Finance Strategists, we partner with financial experts to ensure the accuracy of our financial content.

D. Assets = Liability + Stockholders’ Equity

When one of these elements increases or decreases, it can indicate whether a company is becoming more or less financially healthy. To begin with, it doesn’t provide an analysis of how the business is operating.Furthermore, it doesn't totally keep accounting mistakes from being made. In any event, when the balance sheet report adjusts itself, there is still a chance of a mistake that doesn't include the accounting equation. Like any mathematical equation, the accounting equation can be rearranged and expressed in terms of liabilities or owner’s equity instead of assets.

• Liabilities are settled over time through the transfer of economic benefits including money, goods, or services.
• This equation ensures that all changes in an enterprise's financial position are accounted for.
• We suggest that you try to answer each question yourself before clicking on the "See answer" button.
• Mr Ram, a sole proprietor has the following transactions in his books of accounts for the year 2019.
• The effect of this transaction on the accounting equation is the same as that of loss by fire that occurred on January 20.
• This transaction would reduce cash by $9,500 and accounts payable by $10,000.

Assets = Liabilities + Owner’s equity

We may earn a commission when you click on a link or make a purchase through the links on our site. All of our content is based on objective analysis, and the opinions are our own. Accounting and Billing | Inventory Management | Insightful Business reports | GST Returns and https://www.facebook.com/BooksTimeInc/ reconciliation | Connected e-invoice & e-way bill solution | Cash and Credit Management| Security and user management. TallyPrime is a complete business management software to manage your business easily, faster, and efficiently. Mr Ram, a sole proprietor has the following transactions in his books of accounts for the year 2019.

Total debits always equal to total credits -Total Debits = Total Credits

This transaction brings cash into the business and also creates a new liability called bank loan. This transaction would reduce cash by $9,500 and accounts payable by $10,000. The difference of $500 in the cash discount would be added to the owner's equity. The difference between the sale price and the cost of merchandise is the profit of the business that would increase the owner's equity by $1,000 (6,000 - $5,000). Ask a question about your financial situation providing as much detail as possible. This equation serves to provide an essential form of built-in error checking mechanism for accountants while preparing the financial statements.

The assets have been decreased by $696 but liabilities have decreased by $969 which must have caused the accounting equation to go out of balance. To calculate the accounting equation, we first need to work out the amounts of each asset, liability, and equity in Laura’s business. Creditors have preferential rights over the assets of the business, and so it is appropriate to place liabilities before the capital or owner's equity in the equation. Our team of reviewers are established professionals with decades of experience in areas of personal finance and hold many advanced degrees and certifications. For information pertaining to the registration status of 11 Financial, please contact the state securities regulators for those states in which 11 Financial maintains a registration filing.

How confident are you in your long term financial plan?

On 22 January, Sam Enterprises pays $9,500 cash to creditors and receives a cash discount of $500. The only equity is Sam's capital (i.e., owner's equity amounting to $100,000). On 1 January 2016, Sam started a trading business called Sam Enterprises with an initial investment of $100,000. The effects of changes in the items of the equation can be shown by the use of + or - signs placed against the affected items. We need just a bit more info from you to direct your question to the right person. Finance Strategists has an advertising relationship with some of https://www.bookstime.com/ the companies included on this website.

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• Like any mathematical equation, the accounting equation can be rearranged and expressed in terms of liabilities or owner’s equity instead of assets.
• The accounting equation shows the amount of resources available to a business on the left side (Assets) and those who have a claim on those resources on the right side (Liabilities + Equity).
• The income statement and cash flow statement are also based on the Accounting Equation.
• On 10 January, Sam Enterprises sells merchandise for $10,000 cash and earns a profit of $1,000.

If a transaction is completely omitted from the accounting books, it will not unbalance the accounting equation. On 12 January, Sam Enterprises pays $10,000 cash to its accounts payable. This transaction would reduce an asset (cash) and a liability (accounts payable). On 10 January, Sam Enterprises sells merchandise for $10,000 cash and earns a profit of $1,000.

• If a transaction is completely omitted from the accounting books, it will not unbalance the accounting equation.
• The components of the accounting equation are assets, liabilities, and shareholders' equity.
• Finance Strategists has an advertising relationship with some of the companies included on this website.
• If the left side of the accounting equation (total assets) increases or decreases, the right side (liabilities and equity) also changes in the same direction to balance the equation.

We follow strict ethical journalism practices, which includes presenting unbiased information and citing reliable, attributed resources. To determine the amount of Depreciation for a depreciable asset, subtract its Salvage Value from the original cost. Divide this amount by the number of years in the asset's useful lifespan. Liabilities are settled over time through the transfer of economic benefits including money, goods, or services. We suggest that you try to answer each question yourself before clicking on the "See answer" button.

The components of the accounting equation are assets, liabilities, and shareholders' equity. When the total assets of a business increase, then its total liabilities or owner’s equity also increase. The accounting equation’s left side represents everything a business has (assets), and the right question content area the accounting equation may be expressed as side shows what a business owes to creditors and owners (liabilities and equity). The accounting equation can be used to track a company's financial health by monitoring the changes in its assets, liabilities, and shareholders' equity.

by Георги Тенев

Do Stock Dividends Affect the Retained Earnings Account? Chron com

In short, retained earnings are the cumulative total of earnings that have yet to be paid to shareholders. These funds are also held in reserve to reinvest back into the company through purchases of fixed assets or to pay down debt. It’s not always good news for investors when companies pay dividends out of retained earnings. Some investors are less concerned with distribution and more interested in stock appreciation. If you’re such an investor, you don’t want your company paying out dividends as it ads to a tax burden and slows company growth. Profitable companies are more likely to pay dividends than those closing the accounting period on a deficit.

As an important concept in accounting, the word “retained” captures the fact that because those earnings were not paid out to shareholders as dividends, they were instead retained by the company. They make up the total equity a company received from its shareholders in exchange for issued shares, also known as contributed capital. There are also some rules and regulations that companies must follow when it comes to paid-in and additional paid-in capital balances. Given this crucial role, it’s easy to wonder why companies may choose to pay dividends. Most commonly, companies pay dividends to incentivize investors to continue holding stock.

What Effect Does Declaring a Cash Dividend Have on Stockholders' Equity?

Traders who look for short-term gains may also prefer dividend payments that offer instant gains. What retained earnings are Retained earnings represent the accumulated earnings from a company since its formation. Most companies lose money when they first start up, and so for a time, their retained earnings will be negative. That's one reason why most start-ups don't pay dividends, in addition to the fact that new companies generally need to hold onto any cash they have to grow their business. Revenue, sometimes referred to as gross sales, affects retained earnings since any increases in revenue through sales and investments boost profits or net income.

A
two-for-one split doubles the number of shares outstanding, a three-for-one split
triples the number of shares, and so on. The split reduces the par value per share at
the same time so that the total dollar amount credited to Common Stock remains the
same. If the
corporation issues 100 percent more stock without a reduction in the par value per
share, the transaction is a 100 percent stock dividend rather than a two-for-one stock
split. When a company issues a stock dividend, it distributes additional quantities of stock to existing shareholders according to the number of shares they already own. Dividends impact the shareholders' equity section of the corporate balance sheet—the retained earnings, in particular. Assume ABC issues a stock dividend to common stockholders, resulting in a total issuance of 10,000 additional shares.

• If so, the company would be more profitable and the
  shareholders would be rewarded with a higher stock price in the
  future.
• A company profits, distributes some of them to shareholders as dividends, and keeps the rest as retained earnings to be reinvested.
• DPS can be calculated by subtracting the special dividends from the sum of all dividends over one year and dividing this figure by the outstanding shares.
• Stock dividends do not have the same effect on stockholder equity as cash dividends.
• Retained earnings represent a useful link between the income statement and the balance sheet, as they are recorded under shareholders’ equity, which connects the two statements.
• Auditors are required by
  this law to become more aggressive in looking for fraud in companies
  they audit.

If the company is wrapping up its operations, then it can make dissolution or liquidation dividend payments to shareholders regardless of the condition of its balance sheet. Of course, just because a company can pay dividends doesn't mean it always will. The company won't always have actual cash to pay a dividend, even if the retained earnings line item on its balance sheet is positive. Still, some companies will borrow money specifically to pay a dividend during times of financial stress. Retained earnings are the portion of a company's net income that management retains for internal operations instead of paying it to shareholders in the form of dividends.

Retained Earnings Example

It can most easily be thought of as a company's total assets minus its total liabilities. In the long run, such initiatives may lead to better returns for the company shareholders instead of those gained from dividend payouts. Paying off high-interest debt also may be preferred by both management and shareholders, instead of dividend https://business-accounting.net/ payments. Profits give a lot of room to the business owner(s) or the company management to use the surplus money earned. This profit is often paid out to shareholders, but it can also be reinvested back into the company for growth purposes. Once a company starts making money, then its retained earnings start to rise.

Understanding Dividends: Price Implications

After the ex-dividend date, the share price of a stock usually drops by the amount of the dividend. Sometimes, especially in the case of a special, large dividend, part of the dividend is declared by the company to be a return of capital. The net effect of the stock dividend is simply an increase in the paid-in capital sub-account and a reduction of retained earnings. Though uncommon, it is possible for a company to have a negative stockholder equity value if its liabilities outweigh its assets. Because stockholder equity reflects the difference between assets and liabilities, analysts and investors scrutinize companies' balance sheets to assess their financial health. If a company decides to issue a cash dividend to its shareholders, the funds are deducted from its retained earnings, and there is no effect on the additional paid-in capital.

AccountingTools

However, it is more difficult to interpret a company with high retained earnings. For example, during the period from September 2016 through September 2020, Apple Inc.’s (AAPL) stock price rose from around $28 to around $112 per share. During the same period, the total earnings per share (EPS) was $13.61, while the total dividend paid out by the company was $3.38 per share. Dividend stocks are some https://quick-bookkeeping.net/ of the best and most important stocks in your portfolio. Not only do they offer you some impressive capital gains potential as all equities do, but they are also usually stable businesses and can provide attractive passive income to investors. Yes, retained earnings carry over to the next year if they have not been used up by the company from paying down debt or investing back in the company.

But, the best way to prove profitability is by looking at the income statement; and not how many times the company has paid dividends in the past. When a company’s stock profits, its board of directors may choose to pay out those profits in the form of a dividend. The board can also decide against paying out dividends because corporations aren’t necessarily required to pay out dividends. By the time a company's financial statements have been released, the dividend is already paid, and the decrease in retained earnings and cash are already recorded. In other words, investors will not see the liability account entries in the dividend payable account. After the dividends are paid, the dividend payable is reversed and is no longer present on the liability side of the balance sheet.

Note, however, that the purchase date does not count toward the 60-day total. For shareholders, dividends are considered assets because they add value to an investor's portfolio, increasing their net worth. For a company, dividends are considered a liability before they are paid out.

Retained earnings are the portion of income that a business keeps for internal operations rather than paying out to shareholders as dividends. Retained earnings are directly impacted by the same items that impact net income. These include revenues, cost of goods sold, operating expenses, and depreciation. Additional paid-in https://kelleysbookkeeping.com/ capital is included in shareholder equity and can arise from issuing either preferred stock or common stock. The amount of additional paid-in capital is determined solely by the number of shares a company sells. If your business currently pays shareholder dividends, you simply need to subtract them from your net income.

Corporations: Paid-in Capital, Retained Earnings, Dividends, and Treasury Stock

It is the lowest cost finance that a company can use since the company generates it internally. However, retained earnings may be finite depending on the resources and performance of the company. While additional paid-in capital balance represents a different amount and balance than the paid-in capital balance of a company, both of them are very closely related.

by Георги Тенев

Process Mining Café 27: Activity-based Costing Flux Capacitor

In manufacturing, process costing is an approach used to determine the cost of continuous mass production through one or more processes. Process costing typically involves adding direct material costs at the beginning of the process and adding indirect costs (both direct labor and overhead) gradually during the production process. Below are some fictional process costing system examples showing how it works. Process costing and job order costing are both acceptable methods for tracking costs and production levels. Some companies use a single method, while some companies use both, which creates a hybrid costing system. The system a company uses depends on the nature of the product the company manufactures.

• Where degree of completion of opening work in progress is not given, average method is used.
• Process costing refers to a method of accumulating cost of production by process.
• The assumption is that the cost of each unit is the same as that of any other unit, so there is no need to track information at an individual unit level.
• Under this method, cost is accumulated from various processes for various products.

This costing system is used when the costs of producing each individual unit are very similar, and it is difficult to track the costs for each individual unit throughout the production process. In this article, we will discuss the process costing system examples, methods, and steps. Each department, production process, and batch process keeps track https://bookkeeping-reviews.com/ of their direct material and direct labour costs, as well as the number of units produced. Process costing is an accounting methodology that traces and accumulates direct costs, and allocates indirect costs of a manufacturing process. Costs are assigned to products, usually in a large batch, which might include an entire month's production.

If a manufacturing unit is manufacturing two or more products, which are quite dissimilar to each other, weighted average method is used. Under this method, weighted average is computed and used in valuation of the incomplete units. The first in first out (FIFO) method of costing is used to introduce the subject of materials costing. The FIFO method of costing issued materials follows the principle that materials used should carry the actual experienced cost of the specific units used. Process costing is used by the industries where the goods are produced through the sequence of several processes. Process costing is suitable for industries like paint, oil refining, rubber, chemicals, sugar, paper, soap-making, textiles, etc.

Process costing is generally used in industries that deal with chemicals, distilled products, canned products, food products, oil refineries, edible oils, soap, paper, textiles, and others. (7) This method provides the average cost per unit and the average cost per unit is not always accurate. As such, the average cost is not of much use for the purpose of detailed analysis and operating efficiency.

(15) Some loss of materials in process (due to chemical action or evaporation, etc.) is unavoidable. Throughout the process it is stirred, cracked, and blended so that it is not possible to trace a tank of gasoline back to a specific barrel of oil. Our mission is to empower readers with the most factual and reliable financial information possible to help them make informed decisions for their individual needs. (1) When costs are recorded at the end of the period, it is not possible to exercise control over costs.

Process Costing: Features, Objects and Procedure Cost Accounting

Process Costing refers to a method of accumulating cost of production by process. It represents a method of cost procedure applicable to continuous or mass production industries producing standard products. Costs are compiled for each process or department by preparing a separate account for each process. The cost for the direct material, direct labor, and overheads is assigned to the process which is then allocated for the batch of production.

• This is the term used to describe units that are not yet complete at the end of the period.
• In a manufacturing process the number of units of output may not necessarily be the same as the number of units of inputs.
• Let's consider industries where the output units are uniform and individually not worth a lot.
• In other words, finished output of one process becomes input (materials) of the next process.
• Process costing system is an accounting method usually used by manufacturing companies that mass produces very identical products or units of output.

With processing, it is difficult to establish how much of each material, and exactly how much time is in each unit of finished product. This will require the use of the equivalent unit computation, and management selects the method (weighted average or FIFO) that best fits their information system. Process costing refers to a type of costing procedure commonly adopted by factories.

Management Accounting and Developed Costing Systems

CIMA defines process costing as "The costing method applicable where goods or services result from a sequence of continuous or repetitive operations or processes. Costs are averaged over the units produced during the period". Process costing is suitable for industries producing homogeneous products and where production is a https://quick-bookkeeping.net/ continuous flow. A process can be referred to as the sub-unit of an organization specifically defined for cost collection purpose. When using this method, the total number of units completed and transferred out is added to the equivalent units of work-in-progress to get the total number of units at the end of the period.

Calculate the equivalent units to account for the number of unfinished items at the end of the period

Under this method, cost is accumulated from various processes for various products. They are used where the products pass through only some of the processes but not all the processes of the industry. In this method, the assumption is that the incomplete units from the opening stock are completed first and then the units introduced in the process are completed. The costs added in each process during the current period is prorated to the production necessary to complete the opening work in progress, to complete the units added in the process and units in the work in progress. We know that, there will be Work in progress during the opening and closing of a period and thus an organization needs to decide on the cost flow assumptions. For computing costs under process costing the organization can use either the FIFO or weighted average cost flow assumption.

Consider a manufacturing facility of the business for garments manufacturing company. Due to the large amount of data they have to track, maintaining spreadsheets and manual calculations consumes a lot of time. Harold Averkamp (CPA, MBA) has worked as a university accounting instructor, accountant, and consultant for more than 25 years.

What is process costing in cost accounting?

(2) It is difficult to apportion total cost among joint products and bye-products. (4) The computation of costs per unit at any one process is very easy, as the units are homogeneous, and as such, the cost per unit can be found out easily by averaging. (3) The output of a process is transferred to the next process in the sequence. In other words, finished output of one process becomes input (materials) of the next process. The output or the part of output at the stage of every process can be sold out either at profit or loss. Thus the management can know about the profit or loss at every process by preparing Processes Account.

Production Possibility Frontier (PPF)

Then, all the costs for the current period are summed up and divided by the total number of units. This method is used for cases where there are slight fluctuations in costs from period to period or where there is no standard costing system. After going through a series of processes, raw materials are transformed into final commodities in manufacturing companies that employ process pricing. The three components of process cost are direct materials, direct labor, and manufacturing overhead. Accurately assessing these components helps to track and allocate production costs across different stages or processes. In a process cost system, costs are maintained by each department, and the method for determining the cost per individual unit is different than in a job order costing system.

As one of the process costing system examples, let’s look at a supposed company, ABC Inc, that produces wire rods, that pass through multiple production departments. In many companies, each stage of the production process is usually handled by a different department. Hence, each department prepares a report that includes the three https://kelleysbookkeeping.com/ elements of process costing which are the department’s direct materials, direct labor, and manufacturing overhead. The company then combines these reports to analyze the applicable total cost of the product. Hence, a process costing system is used to allocate costs to an individual unit after a process of mass production.

by Георги Тенев

Business and Finance Crossword Puzzles

Each puzzle is created with the McKinsey audience in mind, and includes a subtle (and sometimes not-so-subtle) business theme for you to find. Answers that are directionally correct may not cut it if you’re looking for a quick win. Either play the interactive version, or if you like putting pen(cil) to paper, download and print when you’re ready to engage. Find past puzzles on our collection page and check back each Tuesday for a new puzzle or, better yet, sign up to get an alert each week when the next challenge is ready. Test your knowledge of business and finance terms with these printable business and finance crossword puzzles. These puzzles are a lot of fun, and they can help improve your financial knowledge at the same time.

Personal Finance Crossword Puzzles

He is the sole author of all the materials on AccountingCoach.com. Some of the words will share letters, so will need to match up with each other. The words can vary in length and complexity, as can the clues. Crossword puzzles have been published in newspapers and other publications since 1873. They consist of a grid of squares where the player aims to write words both horizontally and vertically.

UNDERSTANDING BUSINESS 2023-08-31

This is the process of paying off your debt in regular installments over a fixed period of time. A type of mortgage in which the interest you pay on your outstanding balance rises and falls based on a specific benchmark. An account held by an impartial third party on behalf of two parties in a transaction. A mortgage that carries a fixed interest rate for the entire life of the loan. The payments you make to an insurance company in return for protection from financial losses within the scope of your policy.

Personal items 2020-09-02

Shaun Conrad is a Certified Public Accountant and CPA exam expert with a passion for teaching. After almost a decade of experience in public accounting, he created MyAccountingCourse.com to help people learn accounting & finance, pass the CPA exam, and start their career. Crosswords are a great exercise for students' problem solving and cognitive abilities. For the past 52 years, Harold Averkamp (CPA, MBA) hasworked as an accounting supervisor, manager, consultant, university instructor, and innovator in teaching accounting online.

Finance Crossword Puzzles

• Crosswords are a fantastic resource for students learning a foreign language as they test their reading, comprehension and writing all at the same time.
• Download and print this Money And Finance Vocabulary crossword puzzle.
• The player reads the question or clue, and tries to find a word that answers the question in the same amount of letters as there are boxes in the related crossword row or line.
• If this is your first time using a crossword with your students, you could create a crossword FAQ template for them to give them the basic instructions.
• Some of the words will share letters, so will need to match up with each other.

When learning a new language, this type of test using multiple different skills is great to solidify students' learning. Cross word puzzles are a great way to test your accounting knowledge. A question will appear with a text box to enter in your answer.

A qualified expense that the IRS allows you to subtract from your adjusted gross income, which further reduces your taxable income. A type of policy that provides additional liability coverage beyond what your home, auto or boat insurance may provide. Crossword puzzles are an excellent turbotax freedom edition 2020 way to challenge your kids, review key concepts, and keep them engaged in their learning. Check out this list of ready-to-go crossword puzzles to reinforce money education and personal finance lessons. Sharpen your problem-solving skills the McKinsey way, with our weekly crossword.

Click ok and your answer will be entered in the puzzle. You can use the Check Puzzle button at the bottom of each puzzle to see whether or not you answered the questions correctly. All incorrect answers will appear in red while the correct answers will show up in green. Includes a crossword puzzle with optional word bank, word search puzzle, and answer keys. If this is your first time using a crossword with your students, you could create a crossword FAQ template for them to give them the basic instructions. The fantastic thing about crosswords is, they are completely flexible for whatever age or reading level you need.

If you have a difficult time answering a question, you can always use the solve button to automatically solve the answer.

Used to determine your taxable income, minus any additional IRS-qualified deductions that you’re eligible to take. A person who is financially dependent on your income, typically a child or an adult relative you may support. A standard amount that can be used to reduce your taxable income if you decide not to itemize your deductions.

by Георги Тенев

4 4: Compute a Predetermined Overhead Rate and Apply Overhead to Production Business LibreTexts

When companies manufacture products, sell merchandise, or provide services, they experience a variety of costs in the process. Some of those costs are directly related to a specific process, such as direct labor, direct materials, and billable (to the customer) costs, while others are not. Overhead costs is the term used to refer to expenses that are not directly related to any specific task or job. Examples of overhead costs include rent, utilities, office supplies, and administrative salaries. For example, the total direct labor hours estimated for the solo product is 350,000 direct labor hours.

Direct Costs vs. the Overhead Rate

The predetermined overhead rate was found by dividing the estimated manufacturing overhead cost by the estimated total units in the allocation base, so the predetermined overhead cost per unit is $9.00. Traditionally, direct labor hours were used as the activity base, but technology continually decreases the amount of direct labor used in production, and machine hours or units produced have become more common activity bases. Management analyzes the costs and selects the activity as the estimated activity base because it drives the overhead costs of the unit.

Determining Estimated Overhead Cost

The overhead rate is a cost added on to the direct costs of production in order to more accurately assess the profitability of each product. In more complicated cases, a combination of several cost drivers may be used to approximate overhead costs. Direct predetermined overhead rate labor standard rate, machine hours standard rate, and direct labor hours standard rate are some methods of factory overhead absorption. The use of such a rate enables an enterprise to determine the approximate total cost of each job when completed.

1 Calculate Predetermined Overhead and Total Cost under the Traditional Allocation Method

A pre-determined overhead rate is the rate used to apply manufacturing overhead to work-in-process inventory. The first step is to estimate the amount of the activity base that will be required to support operations in the upcoming period. The second step is to estimate the total manufacturing cost at that level of activity.

• As you have learned, the overhead needs to be allocated to the manufactured product in a systematic and rational manner.
• Fixed costs would include building or office space rent, utilities, insurance, supplies, and maintenance and repair.
• Further, the company uses direct labor hours to assign manufacturing overhead costs to products.
• Costs must thus be estimated based on an overhead rate for each cost driver or activity.
• Since it is arduous to apply overhead cost to each individual cost object, such as a shoe, companies tend to use the average of an aggregate number of objects.

Concerns Surrounding Predetermined Overhead Rates

So, if you were to measure the total direct labor cost for the week, the denominator would be the total weekly cost of direct labor for production that week. Finally, you would divide the indirect costs by the allocation measure to achieve how much in overhead costs for every dollar spent on direct labor for the week. The predetermined overhead rate formula is calculated by dividing the estimated manufacturing overhead cost by the allocation base. The overhead rate allocates indirect costs to the direct costs tied to production by spreading or allocating the overhead costs based on the dollar amount for direct costs, total labor hours, or even machine hours.

• If you'd like to learn more about calculating rates, check out our in-depth interview with Madison Boehm.
• So, if you wanted to determine the indirect costs for a week, you would total up your weekly indirect or overhead costs.
• In contrast, the traditional allocation method commonly uses cost drivers, such as direct labor or machine hours, as the single activity.
• The predetermined overhead rate is then applied to production to facilitate determining a standard cost for a product.
• It is important to include indirect costs that are based on this overhead rate in order to price a product or service appropriately.
• The equation for the overhead rate is overhead (or indirect) costs divided by direct costs or whatever you're measuring.

4 Compute a Predetermined Overhead Rate and Apply Overhead to Production

by Георги Тенев

7 Best Online Bookkeeping Services for Small Businesses

Business owners are now more likely to download sales data directly into their books from point-of-sale or invoicing software. By consistently reviewing these statements, you can identify areas for improvement, such as reducing expenses, optimizing pricing, or exploring new revenue streams. By leveraging technology and automation, you can streamline your bookkeeping processes, reduce the risk of errors, and gain valuable insights into your business performance. We provide third-party links as a convenience and for informational purposes only. Intuit does not endorse or approve these products and services, or the opinions of these corporations or organizations https://energy-comfort.ru/593-sravnenie-razlichnykh-tipov-obtekatelej-dlya-vetrogeneratorov.html or individuals. Intuit accepts no responsibility for the accuracy, legality, or content on these sites.

• Open a dedicated business bank account and obtain a business credit card.
• You may need to re-strategize and make adjustments to ensure you stay on top of your business.
• When setting up accounting for startups, you need to choose a method of recording financial transactions.
• Also, if you pay independent contractors $600 or more during the year, you’ll need to send each one a 1099-NEC form, as well as copies to the IRS.
• However, maintaining accurate financial records is key to your business's success.

Understanding the Importance of Accurate Small Business Bookkeeping

Ultimately, the decision to handle bookkeeping in-house or outsource it depends on your unique business circumstances and personal preferences. By carefully considering the pros, cons, and key factors involved, you can make an informed choice that supports your business’s financial health and growth. It’s easy to overlook small expenses like office supplies or minor subscriptions, but these costs can add up over time and significantly impact your business expense bottom line. Failing to track these expenses can also lead to missed tax deductions. You’ll want to do invoicing weekly in most cases, although some businesses may invoice monthly or as they make credit sales. Adjusting entries are made for accrual of income and expenses, depreciation, allowances, deferrals and prepayments.

The FIFO accounting method

It lists your company’s assets (what you own), liabilities (what you owe), and equity (the difference between assets and liabilities). By reviewing your balance sheet regularly, you can https://ipb.su/documentation/mp3/index.php assess your business’s net worth, monitor debt levels, and make informed decisions about investments and financing. Accounting for small businesses is done by keeping a complete record of all the income and expenses and accurately extracting financial information from business transactions. When you account for deferred expenses, your bookkeeping will reflect the month you actually enjoy the benefit of the expense rather than the month in which you paid it.

Plan Ahead for Taxes

However, general ledgers can get complicated if you're trying to juggle multiple accounts. If you're searching for accounting software that's user-friendly, full of smart features, and scales with your business, Quickbooks is a great option. If you choose to use double-entry bookkeeping—and we strongly suggest you do! We'll show you examples of how to record a transaction as both a credit and debit later on. Accounts receivable (AR) is the money your customers owe you for products or services they bought but have not yet paid for. It’s important to track your AR to ensure you receive payment from your customers on time.

• This is irrespective of whether you received or paid cash for the product or service.
• Generally, accrual basis is the recommended accounting method and more aligned with generally accepted accounting principles.
• We suggest turning reconciliation into a habit and doing it at least monthly to prevent the work from piling up and becoming overwhelming.
• These are methods used by most people in the accounting profession, so if your bookkeeping is ever questioned, your methods will be accepted by others.

Pay your team

• Reconciliation helps identify discrepancies and errors, allowing you to address them promptly.
• Most accounting software allows you to automatically run common financial statements such as an income and expense statement, balance sheet and cash flow statement.
• Dive into our detailed guide on small business accounting and ensure your company’s financial health is well-maintained.
• It can also include putting together the three key financial statements—the income statement, balance sheet, and cash flow statement.
• Once the invoice has been presented, the amount of the sale is now owed to you.

Plus, our user-friendly interface makes it easy for even those without any accounting experience to manage their finances effectively. This not only saves you money upfront but also reduces ongoing maintenance costs. Since you are tracking your income and expenses regularly, you can quickly identify areas where you may be overspending and find ways to minimize costs. Common bookkeeping errors include transposing numbers, entering data in the wrong account, adding or leaving out digits or decimal places, or duplicating and omitting entries. The small business bookkeeping tips above help to minimize these errors. Keep records of your business transactions for 6 years if you don’t report income and if the income represents over 25% of your return gross income.

Small Business Bookkeeping: A Beginner’s Guide

The specific answer to this question can vary somewhat depending on the extent of bookkeeping services your company needs, and how often you require the https://englishtips.org/1150828584-bookkeeping-for-canadians-for-dummies.html services of a small business bookkeeper. For full-time bookkeepers, the average annual salary sits around $77,000, according to Glassdoor. The specific amount of an emergency fund may depend on the size, scope, and operational costs of a given business. Regardless, work with your bookkeeper and accountant to ensure the amount of cash left in the bank is sufficient for unexpected costs. Finding the right level of cash to be kept on hand requires a proper cash flow forecast and cash monitoring.

by Георги Тенев

Paid-In Capital: Examples, Calculation, and Excess of Par Value Xero accounting

Additional paid-in capital (APIC), is an accounting term referring to money an investor pays above and beyond the par value price of a stock. Paid-in capital is the amount of capital “paid in” by investors during common or preferred stock issuances, including the par value of the shares themselves plus amounts in excess of par value. Paid-in capital represents the funds raised by the business through selling its equity and not from ongoing business operations. Knowing where a company is allocating its capital and how it finances those investments is critical information before making an investment decision. This will increase the total balance as the issuance of the new preferred shares will lead to an increase in the paid-in capital as excess value is being recorded.

paid-in capital in excess of par value - common stock

Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment returns. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Both of these items are included next to one another in the SE section of the balance sheet. It is a great way to generate cash for businesses without first laying down any collateral.

Stockholders' Equity Outline

The par value of the issued stock goes to the common or preferred stock line, while the amount paid by investors above and beyond the par value goes to the additional paid-in capital line. Shareholder’s equity is a section that includes capital contributed to the company plus its retained earnings from all prior years in business. The term “additional paid-in” originated from the early days of corporate finance when companies issued stock to raise capital. Over time, the term “paid-in capital over par” was shortened to “additional paid-in capital.” On the other hand, the issue price is reflective of investor expectations of the company’s valuation. The difference between the par value and what the market thinks a share is worth determines the additional paid-in capital in the above equation. APIC is recorded at the initial public offering (IPO) only; the transactions that occur after the IPO do not increase the APIC account.

Paid-in Capital vs Retained Earnings

InnovateTech decides to raise capital by issuing shares of common stock to fund its growth and development. After attracting investors, InnovateTech successfully sells the shares at a price of $20.00 per share. Paid-in capital in excess of par also gives a company some flexibility when it comes to issuing new shares of stock. For example, if a company wants to issue new shares but doesn't have enough cash on hand to cover the cost, it can use the paid-in capital to finance the issuance.

If preferred stock is sold instead of common stock, then a credit to the preferred stock account replaces the credit to the common stock account. Meanwhile, investors may elect to pay any amount above this declared par value of a share price, which generates the APIC. Upon multiplying the excess spread over the stated par value by the number of common shares outstanding, we arrive at an additional paid-in capital (APIC) value of $49.9 million.

• This capital provides a layer of defense against potential losses, in the event that retained earnings begin to show a deficit.
• – For example, if 1,000 shares of $10 par value common stock are issued by at a price of $12 per share, the additional paid-in capital is $2,000 (1,000 shares x $2).
• It is calculated by adding the par value of the issued shares with the amounts received in excess of the shares' par value.
• A young company with big expectations might have significantly more paid-in capital than earned capital.
• Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services.
• Paid-in capital includes the raised capital in excess of par value and what is raised at par value when a company sells preferred and common stock.

What does paid in capital account represent?

By raising capital through APIC, companies can improve their financial flexibility and reduce financial risk. Learn how additional paid-in capital is used to track equity fundraising contributions in a company. Let’s say Blue Star distributes a 5% bonus stock to its 2.0 million shareholders as a dividend. The buyback is frequently carried out when a corporation has significant financial reserves or surplus funds. Preferred stockholders have priority in receiving payment during bankruptcy proceedings.

Besides his extensive derivative trading expertise, Adam is an expert in economics and behavioral finance. Adam received his master's in economics from The New School for Social Research and his Ph.D. from the University of Wisconsin-Madison in sociology. He currently researches and paid in capital in excess of par teaches economic sociology and the social studies of finance at the Hebrew University in Jerusalem. These materials were downloaded from PwC's Viewpoint (viewpoint.pwc.com) under license. The amount to be received in the ordinary course of business in an arm’s length transaction.

But shareholders of the stock can resell them at a higher price to make profits. The retirement of treasury stock is also an option for the company if it doesn’t want to reissue it. Due to the retirement of treasury stock, the whole balance applicable to the number of retired shares gets reduced. Or the balance from the paid-in capital calculation at par value and the balance in additional share capital gets reduced accordingly depending on the number of retired treasury shares.

Companies may opt to remove treasury stock by retiring some treasury shares rather than reissuing them. The retirement of treasury stock reduces the balance of paid-in capital, applicable to the number of retired treasury shares. The balance sheet number on paid-in capital may reflect transactions in common shares, preferred shares, treasury stock, or some combination of all of these. Issuing Par Value Common Stock for Cash(assume par value is $1) dr. Cash $1.00cr. Common Stock $1.00to record issuance of 1 share of $1 par common stock if sold formore than par value (Assuming $5) dr. Cash $5cr. Common Stock $1Paid-in Capital in excess of par $4to record issuance of 1 share of common stock in excess ofpar.

The investors that participated in the capital raise paid $10.00 per common share. Although shares are rarely sold at par value, we will suppose that market participants have evaluated the stock to have a price of one dollar. It means that the par value of this stock is the same as its market value in the primary market. The price for which the stocks are initially sold is usually way above the par value.

by Георги Тенев

Static-X Vocalist 'Xer0' Has Been Identified

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• Dope also mentions that having Xer0 as the frontman for Static-X, and not Edsel Dope or whoever else, allows the band to have a future beyond the iconic Wayne Static.
• Dope is currently touring Europe with Static-X, and will support the nu metal band on the second leg of their North American tour, which kicks off in Austin, Texas November 8.
• Back in October 2019, a photo was posted online clearly showing that Dope and Xer0 shared the same neck tattoo.
• "If it was 25 years ago, we wouldn't have any of this mess because we'd call the editor of fucking Rolling Stone magazine and go, 'Hey, dude, we're gonna let you in on what's happening,' and they would go, 'Oh, this is great,' and they would get behind it and they would properly help you tell your story to the world. But in the world that we currently live in, that's not the goal. The goal is, as I said, to be the naysayer and to be the one who lets you in on the fact that there is no Santa Claus and ruins the parade for everybody because they're just dicks."
• The comments reside on Facebook servers and are not stored on BLABBERMOUTH.NET.

Here’s what Sleep Token played as they kicked off 2024 European tour, with III and IV missing out due to illness

The reaction to the costume for Xer0 was originally mixed, but it seems like everyone's cool with it now and having fun.

Personal life

"And we were always friends, but now we're like the best of friends. And we owe each other a lot. I'm grateful for the opportunity because without those guys and the years of work they put into building STATIC-X, I wouldn't have a project to land all those efforts too. And for them, without my efforts to help them survive and exist in the modern day, they would have this band that is no longer around. For lack of a better word, we literally brought STATIC-X back from the dead. And it took allof us to do it." Rumors began to swirl that Xer0 was actually Dope frontman Edsel Dope, which have since been confirmed and discussed by Dope himself. Despite everyone knowing the identity of Xer0, Dope still doesn't want to be known as the guy who fronts Static-X. The first of two volumes, "Project Regeneration Vol. 1" featured 12 brand new tracks, containing many of the final vocal performances and musical compositions of Static, along with Campos, Jay and Fukuda. On October 12, Edsel Dope posted a lengthy statement on his band’s Facebook page quashing the rumours, implying Xer0’s telltale neck tat was in fact a Photoshop job. “I have quietly sat through all of this speculation and have thoroughly enjoyed the ride,” it began.

Project: Regeneration Vol. 2 + Static-X On Tour

"The motive behind it is that I, Edsel Dope, have zero interest in being the frontman, face or [being] known as the singer of STATIC-X," he said. "I feel like as long as we never put another face to STATIC-X, Wayne will always be the face of STATIC-X. It's appropriate. That was the number one most important thing. I'll help my friends. This all started in 2014. In 2014, I moved to L.A. I was working on the DRAMA CLUB project and I really, really wanted to produce another band and make a great record without me being in the band. I just wanted to move the controls, do what I do and help another band sound great. I had done it with a couple of other bands that I produced, but I wanted to do it edsel dope xero with a band of note. Static-X vocalist Wayne Static passed away in November 2014, which of course made everyone think the band was over. Static-X's founding members then resurrected the band in 2018 with live vocalist Xer0 (widely believed to be Dope vocalist Edsel Dope– who is also the band's day to day manager and Executive Producer to their music) to play shows, and would eventually release Project Regeneration Vol. Yang, alongside creative director Edsel Dope (who just dropped a new Dope album, Blood Money Part Zer0, today - Feb. 24) and Ed McDonough of ECCO Studios, have provided Xer0, the figurehead paying tribute to the late Wayne Static onstage with StaticX, with a well-timed update.

JEFF PILSON On Possibility Of One Final DOKKEN Album With Classic Lineup: 'Don't Hold Your Breath'

DOPE leader Edsel Dope has shared his thoughts on "Xer0", the masked frontman of STATIC-X who is widely believed to be him. In a recent interview with BLABBERMOUTH.NET, Edsel talked about the unique position of fronting STATIC-X in place of deceased vocalist/guitarist Wayne Static while trying to remain faceless. In an interview with the Battleline Podcast, Dope explained in detail why he feels the band isn't a cash grab and why he thinks that Static would be proud. On the topic of the former, Dope said it's essentially way too expensive to put on a Static-X show for it to be a "cash grab;" and on the latter says he feels Static would approve of his legacy being upheld. See the music video for that cover here and look for the album to be released on Nov. 3 later this year. Dope is currently touring Europe with Static-X, and will support the nu metal band on the second leg of their North American tour, which kicks off in Austin, Texas November 8.

When Erickson noted that social media has given everyone a voice, which in turn has turned out to be more of "negative than a positive", Dope concurred. The irony is quite obvious as the aliases are nearly identical and are pronounced (presumably) the exact same way. It's sure to send certain fans right down the rabbit hole from whence they came in regards to uncovering the true identity of the enigmatic Xer0. In the fall of 2019, Edsel Dope even addressed the rumors that he is Xer0 in Static-X in a statement that dismissed a story claiming to have photographic proof of his neck tattoos being exposed.

Many of these comments echo what Edsel said in a pre-order announcement video for Dope's forthcoming album, Blood Money Part Zer0. Along with the news of the new record came a pair of new songs, "Believe" and "No Respect," which can be heard here. "If it was 25 years ago, we wouldn't have any of this mess because we'd call the editor of fucking Rolling Stone magazine and go, 'Hey, dude, we're gonna let you in on what's happening,' and they would go, 'Oh, this is great,' and they would get behind it and they would properly help you tell your story to the world. But in the world that we currently live in, that's not the goal. The goal is, as I said, to be the naysayer and to be the one who lets you in on the fact that there is no Santa Claus and ruins the parade for everybody because they're just dicks." Brief interjection – writing about Ghost's lore and writing about the business and creative side of Ghost are two different things.

Compared with an old photo of Edsel Dope, the tattoo seems to be an exact match. A super close up shows a similar gap in the tattoo, looking almost like an cartoonish orbital socket. Since his debut in Static-X, Xer0 has covered his neck to conceal any identifying features. However, during an Oct. 7 concert in Hamberg, Germany, Xer0’s neckerchief slipped down, revealing a tattoo on the right side of his neck. Catch dope on the 2023 Rise of the Machines tour with headliners Static-X as well as special guests Fear Factory, Mushroomhead and Twiztid at these stops. In the fall of 2019, Edsel addressed the rumors that he is Xer0 in Static-X and dismissed it all as "clickbait and hilarious" in a lengthy statement.

He dubbed it "clikcbait and hilarious" and provided Photoshopped images of various celebrities sporting that same neck tattoo. Not only are Static-X faithfully delivering classics onstage, touring heavily in recent years and keeping the legacy in trustworthy hands for the future, but they're offering fans a sense of closure by working with Wayne's recordings to make this new music a reality. "And if you saw those shows, or even if you just find them online, the amount of production and time and money that was invested… Anybody saying, 'Oh, look at these guys with their cash grab,' it's, like, 'Bro, you wanna see the fucking bill from production and from touring?' This was not a bunch of guys going, 'Oh, we found our way to get to the top financially.' No. This was a way for us to go out and do something really fucking cool creatively, artistically that came from all the right places in our hearts. Edsel Dope, founder of nu-metal/industrial outfit Dope, has been rumored to be Xer0, the frontman taking the stage in tribute to the late Wayne Static in the reactivated Static-X lineup.

by Георги Тенев

Direct Material Price Variance Formula, Analysis & Example

A solid grasp on them helps in maintaining tight cost control over materials procurement. It tracks if spending goes as planned or if there are surprises needing attention. After figuring out how much material you used, it’s time to look at the prices.

• For example, if a material price variance is detected, managers should examine market conditions, supplier performance, and procurement strategies to pinpoint the cause.
• 11 Financial’s website is limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information, publications, and links.
• Specifically, knowing the amount and direction of the difference for each can help them take targeted measures forimprovement.

Favorable Direct Material Price Variance

The direct materials quantity variance of Blue Sky Company, as calculated above, is favorable because the actual quantity of materials used is less than the standard quantity allowed. However, a favorable direct material price variance is not always good; it should be analyzed in the context of direct material quantity variance and other relevant factors. It is quite possible that the purchasing department may purchase low quality raw material to generate a favorable direct material price variance. Such a favorable material price variance will be offset by an unfavorable direct material quantity variance due to wastage of low quality direct material. Direct material price variance is the difference between what was actually spent on the raw materials purchased during a period and the standard cost that would apply if the materials were bought at the standard rate. To calculate the variance, we multiply the actual purchase volume by the standard and actual price difference.

Diagramming direct materials variances

If actual prices for materials are lower than budgeted, the variance is favorable. That means the company spent less on materials than expected – a good thing! The result from this calculation tax form 1099 gives you the direct material price variance for your accounting records. If materials cost more than planned, your variance will be negative, showing a loss against your standard cost.

Direct Materials Quantity Variance Calculator Online

Accountingo.org aims to provide the best accounting and finance education for students, professionals, teachers, and business owners. Keep an eye out for trends; if variances are often unfavorable, it might suggest problems with supplier pricing or purchasing practices that require attention. This clarity aids managers responsible for buying materials, like purchasing and warehouse managers, who need precise data for better sourcing decisions and negotiations with suppliers. A financial professional will offer guidance based on the information provided and offer a no-obligation call to better understand your situation. Someone on our team will connect you with a financial professional in our network holding the correct designation and expertise. Meanwhile, actual cost comes from real bills and receipts showing what your company did pay.

Example of the Direct Material Price Variance

You need to know both the budgeted price and what you actually paid for each unit of material. The budgeted price is usually based on standard cost – what your company expects to pay per unit of material. Picture this—your direct materials end up costing more than expected, but you’re not sure why or by how much. That’s where understanding and computing the price variance becomes essential. However, someone other than purchasing manager could be responsible for materials price variance. For example, production is scheduled in such a way that the purchasing manager must request express delivery.

This is offset by a larger unfavorable direct materials price variance of $2,520. The net direct materials cost variance is still $1,320 (unfavorable), but this additional analysis shows how the quantity and price differences contributed to the overall variance. This variance helps businesses understand how efficiently they are managing their material costs and can highlight areas where cost control measures may be needed. The standard cost of actual quantity purchased is calculated by multiplying the standard price with the actual quantity.

This calculation helps businesses understand the efficiency of their material usage and identify areas for improvement. The direct material price variance can be meaningless or even harmful in some circumstances. For example, the purchasing manager might have engaged in heavy political maneuvering to have the standard price set unusually high, which makes it easier to generate a favorable variance by purchasing at prices below the standard.

Consequently, the variance should only be used when there is evidence of a clear price increase that management should be made aware of. Since the price paid by the company for the purchase of direct material exceeds the standard price by $120, the direct material price variance is unfavorable. Calculate the direct material price variance if the standard price and actual unit price per unit of direct material are $4.00 and $4.10 respectively; and actual units of direct material used during the period are 1,200. Another advanced technique is the application of statistical methods, such as regression analysis, to understand the relationship between different variables affecting material costs. By analyzing historical data, businesses can identify key drivers of variances and quantify their impact.

The material price variance is adverse because the actual price is higher than the standard. The material price variance in this example is favorable because the company was able to get the materials at a lower cost compared to the budget. The standard price of $100 per bag was allowed in the budget, but the purchase manager was able to source the materials from a cheaper supplier at the cost of $80 per bag. It could be because a company got a discount or faced a materials shortage.

The total price variance during January is $ 200 ($ 400 – $ 300  + $ 100), and it will impact the cost of goods sold in statement of profit and lose. We can simplify the DMPV formula by multiplying the actual purchase quantity by the price difference, as shown below. This step shows the total impact on your budget due to changes in material costs. This process helps pinpoint where costs are not aligning with your financial plans and aids in maintaining control over spending.

by Георги Тенев

Direct Material Variance: Calculation, Analysis, and Applications

Direct Material Price Variance is the difference between the actual cost of direct material and the standard cost of quantity purchased or consumed. Direct materials price variance account is a contra account that is debited to record the difference between the standard price and actual price of purchase. Sometimes companies have trouble figuring out the direct material price variance. Looking closely at these causes helps managers make better choices in the future. They can find ways to keep costs down and make sure they use resources well.

Implications of direct material price variance

This is offset by a larger unfavorable direct materials price variance of $2,520. The net direct materials cost variance is still $1,320 (unfavorable), but this additional analysis shows how the quantity and price differences contributed to the overall variance. This variance helps businesses understand how efficiently they are managing their material costs and can highlight areas where cost control measures may be needed. The standard cost of actual quantity purchased is calculated by multiplying the standard price with the actual quantity.

How confident are you in your long term financial plan?

By delving into the specifics of variances, companies can uncover inefficiencies and make informed decisions to optimize their operations. The first step in this analysis is to regularly review variance what is the last in first out lifo method reports, which provide a snapshot of how actual costs compare to standard costs. These reports should be detailed and timely, allowing managers to quickly identify and address any discrepancies.

Direct Material Price Variance Calculator

Therefore, the purchase cost of the entire quantity must be compared with the standard cost of the actual quantity. The actual price must exceed the standard price because the material price variance is adverse. A solid grasp on them helps in maintaining tight cost control over materials procurement. It tracks if spending goes as planned or if there are surprises needing attention. After figuring out how much material you used, it’s time to look at the prices. You need to know both the budgeted price and what you actually paid for each unit of material.

The direct materials price variance of Hampton Appliance Company is unfavorable for the month of January. This is because the actual price paid to buy 5,000 units of direct material exceeds the standard price. The direct material price variance is the difference between the actual price paid to acquire a direct materials item and its budgeted price, multiplied by the actual number of units acquired. This information is needed to monitor the costs incurred to produce goods.

• It’s not just about knowing the number of units but understanding their role in cost variance calculation too.
• As another example, the decision to buy in different volumes may be caused by an incorrect sales estimate, which is the responsibility of the sales manager.
• For information pertaining to the registration status of 11 Financial, please contact the state securities regulators for those states in which 11 Financial maintains a registration filing.
• This investigative approach ensures that corrective actions are targeted and effective.

Learn how to calculate, analyze, and apply direct material variance for effective cost control and improved financial performance. We'll also include examples to display the process of calculating your direct material price variance. The manager may try to overstate it to protect himself from being punished if something goes wrong during the production (unexpected waste or error). Our selling price is higher than the competitors and for sure it will impact the sale quantity. An adverse material price variance indicates higher purchase costs incurred during the period compared with the standard. Now that we have understood the direct material price variance calculation, let's look at how to interpret it.

Finance Strategists has an advertising relationship with some of the companies included on this website. We may earn a commission when you click on a link or make a purchase through the links on our site. All of our content is based on objective analysis, and the opinions are our own.

Whether it's to pass that big test, qualify for that big promotion or even master that cooking technique; people who rely on dummies, rely on it to learn the critical skills and relevant information necessary for success. If items are needed quickly and ordered on a rush, the cost may be higher. Our mission is to empower readers with the most factual and reliable financial information possible to help them make informed decisions for their individual needs. For information pertaining to the registration status of 11 Financial, please contact the state securities regulators for those states in which 11 Financial maintains a registration filing. Both formulas give the same answer so feel free to use whichever seems easier to you.

by Георги Тенев