6 Key
Federal Income Tax – funded by the employee, State Income Tax – funded by employee, FICA – funded by both the employee and employer, and Unemployment Taxes – funded by the employer.
These reports can help management by telling them how much time was worked on each job. Detail can also be given by category, by employee, or by service offered.
6 Summary
Chapter 7
7 Key
On a tax return, depreciation is calculated using MACRS and follows the rules of the IRS. For financial statements, depreciation is calculated most often by the straight-line method and following the rules of GAAP.
Cash basis – A sale is recorded when cash is received from the customer. Expenses are recorded when cash is paid.Accrual basis – Sales are recorded when the good or service is provided regardless of when the cash is collected from the customer. Expenses are recorded when the cost is incurred or expires, even if the expense has not been paid.
7 Summary
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