Construction accounting 101: An expert guide for contractors

If the quote is too low, it can lead to deficit projects and troublesome renegotiations with customers. If the quote is too high, your competitors may lose your order.Poor estimates can lead to revenue recognition issues for companies using the completion rate method. To create an accurate labor cost estimate, it is essential to understand […]

Calculate Net Realizable Value: NRV Explained with Formula and Example

The estimated costs to complete the sale are all those costs necessary to carry out the transaction. Cash realizable value is calculated by estimating the amount expected to be collected from accounts receivable. Subtract the allowance for doubtful accounts from the total accounts receivable. For example, if accounts receivable is $50,000 and the allowance for […]

Retained Earnings: Calculation, Management, and Uses Explained

The amount of this capital is equal to the amount the investor pays for the stock in addition to the face value of the share itself. Meaning, stock dividends lead to the transfer of the amount from the retained earnings account to the common stock account. Management knows that shareholders prefer receiving dividends, but they […]

Depreciation Causes, Methods of Calculating, and Examples

The recovery period begins on the later of the following dates. The GDS recovery periods for property not listed above can be found in Appendix B, Table of Class Lives and Recovery Periods. Residential rental property and nonresidential real property are defined earlier under Which Property Class Applies Under GDS. Your use of either the […]

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