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You're a cash-basis taxpayer, which means that you report your income and expenses when they happen. That also means you need to include any funds in your account on the day before year's end as part of your gross income for the year. And if you had $10,00 in an account at 11:59 p.m. on December 31st. Then according to...
When it comes to economics, there are many different concepts that you need to be familiar with. One of these is supply and demand. Supply and demand are two forces that work together to create the price of goods in a market. Let's take a closer look at what they are, how they work, and why understanding this concept...
One of the most common questions we hear from our customers is "which accounts should I use when receiving cash for my supplies?" In this post, we will break down how to account for a purchase of inventory. First, you need to record the purchase in your inventory journal. This will set up an account for the cost of purchasing...
As supply decreases, prices increase. This is a phenomenon that can be seen in the natural world and also applies to economics. In this blog post, we will talk about how demand impacts price changes as well as an example of this happening in real life with the recent California drought. In economics, the law of demand states that goods...
The demand for a product is based on how much people want that product. The supply of the product can change with time, which will affect the price and availability of that product. This relationship between supply and demand is called "the law of supply." The law of supply is the basic idea that when there are a lot...
What is the best way to record a cash investment in your books? Is it better to do it all at once or gradually over time? Should you even be making a cash investment in the first place? This article will answer these questions and more. The content of this article was created by Trisha Lafevers, an expert accountant. How to Properly...
Every economic theory has its own paradox. Even the most standard of theories, like supply and demand, have a paradox which is well-known to economists: the price ceiling. A price ceiling is an artificial limit that prevents a seller from selling their good or service for more than it's worth in order to maintain profitability. The problem with this is...
The law of supply and demand is a fundamental economic principle that states that an increase in the availability of goods or services will cause a decrease in price. Conversely, when goods or services are scarce, prices tend to rise. Understanding how this principle affects your business can help you make more informed decisions about pricing and inventory levels. For...
Carbon is the element that provides structure to all life on earth. In fact, it makes up a whopping 90% of the human body. It has six protons and six electrons, with an atomic weight of 12 and an atomic number of 6. What kind of bond do carbon atoms form? Carbon atoms are most likely to form covalent bonds...
Decreased input costs, such as wages or raw materials, can have significant impacts on a firms’ performance. One of the most notable impacts is that it will allow for increased output and profits. This article discusses how decreased input costs can affect firm performance. Emphasis: Input costs are a key factor in the performance of firms. Decreased input costs can...