Accounting

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About.com explains that a capital contribution in accounting is a segment of a company's recorded equity. The amount may be contributed using cash, equipment or other fixed assets. A common way for an owner to contribute capital to a company is to buy stocks.

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  • What Is the Meaning of Gross Pay?

    Q: What Is the Meaning of Gross Pay?

    A: An employee’s gross pay is the money earned from working before taxes and other deductions. An employee’s gross pay includes the money they earn from commissions, overtime and tips.
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  • What Does Retro Pay Mean?

    Q: What Does Retro Pay Mean?

    A: Retro pay are wages due to an employee for work already performed or services already rendered, usually in association with a pay raise that requires some sort of payroll action before taking effect.
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  • Why Is Finance Important to a Business?

    Q: Why Is Finance Important to a Business?

    A: Finance helps businesses achieve their goals by providing the funding they need to achieve them. Without funding, businesses cannot be successful.
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  • What Is Income From Continuing Operations?

    Q: What Is Income From Continuing Operations?

    A: Income from continuing operations is ongoing earnings from normal business activity. It is what a company can expect from future earnings, such as if a company plans to continue to produce shoelaces and buttons but no longer zippers, earnings from the zippers is not calculated as income from continuing operations.
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  • What Is a Goods Received Note?

    Q: What Is a Goods Received Note?

    A: A goods received note is a receipt given to the supplier to confirm delivery or acceptance of goods by the customer. After the supplier receives this note, a payment invoice is sent to the customer.
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  • What Is the Full Disclosure Principle in Accounting?

    Q: What Is the Full Disclosure Principle in Accounting?

    A: The full disclosure principle states that financial records should include all of the information necessary for readers to understand those records. This is a largely subjective principle, but full disclosure doesn't mean that records should include irrelevant information.
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  • What Does "accretion" Mean in Accounting?

    Q: What Does "accretion" Mean in Accounting?

    A: In accounting, the word "accretion" refers to growth in value over time. Accretion typically refers to the increase of value of a bond over time.
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  • What Is the Ordinary Annuity Formula?

    Q: What Is the Ordinary Annuity Formula?

    A: The ordinary annuity formula appears as "P = r (PV) / 1 - (1+R) - n." The formula is used to calculate the periodic payment against an annuity when the rate and payments remain the same, with the first payment exactly one period away.
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  • What Is an Invoice Used For?

    Q: What Is an Invoice Used For?

    A: An invoice is a document sent by a business to a client denoting an obligation to pay for goods or services. One primary purpose is to communicate the requirement to pay for the goods. The other is to document the transaction as an accounts receivable in its accounting system until the bill is paid.
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  • How Do You Write a Monthly Report?

    Q: How Do You Write a Monthly Report?

    A: Monthly reports are used by project managers and program directors to inform supervisors of the progress of projects. The reports are based on one calendar month and are usually turned in within a week after the month ends. A report typically consists of one or two pages of easily digestible information.
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  • What Is the Main Objective for Any Business?

    Q: What Is the Main Objective for Any Business?

    A: Under traditional business theory, the main objective of any business is to make a profit for its owners. Only those business activities that result in the highest profit margin meet this basic objective.
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  • What Are Examples of Liquid Assets?

    Q: What Are Examples of Liquid Assets?

    A: Some examples of liquid assets include cash held in a safe deposit box, checking accounts, saving accounts, money market accounts, U.S. Treasury bills and some types of retirement accounts. An asset is liquid if you can quickly turn it into spendable cash without a significant penalty or loss in the underlying value.
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  • What Is a Capital Contribution in Accounting?

    Q: What Is a Capital Contribution in Accounting?

    A: About.com explains that a capital contribution in accounting is a segment of a company's recorded equity. The amount may be contributed using cash, equipment or other fixed assets. A common way for an owner to contribute capital to a company is to buy stocks.
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  • How Is Direct Labor Cost Calculated?

    Q: How Is Direct Labor Cost Calculated?

    A: The simplest method for calculating direct labor cost is represented by multiplying the total hours worked times the wage rate for the period of time in question. The equation looks like this: direct labor cost equals total labor hours times labor rate.
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  • What Goes Into a Payment Agreement Letter?

    Q: What Goes Into a Payment Agreement Letter?

    A: According to Reference.com, a legal payment agreement letter must contain the date of the transaction as well as the details of the repayment agreement and any penalties incurred if the borrower defaults on the agreement. Both the payee and borrower must sign the letter, thereby creating a legally binding document.
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  • What Is Owner's Capital?

    Q: What Is Owner's Capital?

    A: In business, owner's capital, or owner's equity, refers to money that owners have invested into the business. In some instances, individuals prefer to finance activities through capital, rather than loans, to avoid facing any financial interest charges.When activities are financed through capital in a business, the profits must be paid to the owners.
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  • How Do You Define Accounting Ethics?

    Q: How Do You Define Accounting Ethics?

    A: Accounting ethics refers to the standards of right and wrong conduct that apply to the accounting profession. Various accounting organizations maintain professional codes of conduct to assist accountants with upholding ethical behavior.
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  • What Are Some Advantages and Disadvantages of Trade Credit?

    Q: What Are Some Advantages and Disadvantages of Trade Credit?

    A: The greatest advantages of trade credit to businesses include the availability of zero percent financing and potential discounts on needed goods, while the biggest disadvantage is the risk of late payment fees. Trade credit is an arrangement between a supplier and a business to receive goods or services while delaying cash payment until a later date.
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  • What Are Net Fixed Assets on a Balance Sheet?

    Q: What Are Net Fixed Assets on a Balance Sheet?

    A: According to Ohio State University, net fixed assets on a balance sheet are the book value of a company's long-term assets, such as property, vehicles or equipment. The net fixed asset value is calculated by taking the gross asset value, or purchase price, and subtracting the accumulated depreciation of value.
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  • What Is the Definition of "revenue Allocation"?

    Q: What Is the Definition of "revenue Allocation"?

    A: Revenue allocation is the distribution or division of total income, or revenue, in a business, corporate or government structure. It involves a complex process that entails how and where to allocate revenues in order to ensure the viability of departments and maintain the operating structure of the organization.
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  • What Is the Advantage of an Accounting Information System?

    Q: What Is the Advantage of an Accounting Information System?

    A: The main advantages of an accounting information system are the increased speed of processing the numbers, efficient organization, and classification and safety of inputted data. This contrasts the manual evaluation of information, which involves writing out the data by hand and doing time consuming calculations.
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