Changes to the Balance Sheet: Asset-Based Transactions
There are five types of events that may alter the ownership, quantity, or value of a firm’s assets, each subsequently impacting the Balance Sheet and requiring careful documentation.
Classifying Transactions on QBO – Categorization History
When classifying bank transactions on Quickbooks Online, it can be useful to recall how expenses with a particular vendor were classified in the past. QBO allows you to easily search the vendor's Categorization History from the Banking Screen directly.
Double Entry Bookkeeping Made Simple(ish)
An introduction to the system of double-entry bookkeeping. Including a glimpse into how dual entries help maintain balance sheet equilibrium.
Proportional and Incremental Methods for Recording Lump Sum Security Sales
The Proportional and Incremental methods are two ways companies can allocate the lump sum total earned on a sale of multiple securities. This is a clear explanation with a step-by-step example.
Keep It Personal – Classify Your Online Payments Properly or Face the 1099-K
The 1099-K originates in business transactions performed using online payment systems like PayPal. The situation changed for everyone starting January 2022, eliminating a potential tax loophole for small businesses and creating substantial more risk for personal use.
Living Economics: The Three Main Benefits of Trade
While the benefits (and costs) of trade are numerous, economists tend to prioritize three key "gains" that the economy receives from domestic and global trade. Read more to learn about specialization, absolute advantage, and comparative advantage
Living Economics: Marginal Cost and Utility on the Production Possibility Frontier (PPF)
The PPF is a model or graph demonstrating the trade-off involved in shifting production between two products where all resources are already in use. This article incorporates clear charts and examples to demonstrate how the PPF works.
Living Economics: The Expanded Circular Flow Diagram
The circular flow diagram is perhaps overly simplified and becomes increasingly complex as other parties and transactions form. The inclusion of foreign, governmental, and monetary institutions adds to the complexity of the system.
Living Economics: The Resource Management System
The Resource Management cycle is divided into four stages (Create, Gather, Trade, Divide), each with the possibility for disruptions to arise and each having its own issues and concerns.
Living Economics: Tools of the Trade
Economics is the study of how and why people, organizations, and governments create, gather, trade, and divide resources.