Bookkeeping

Items you can actually touch, such as cash, inventory, equipment, land or a building. Inaccurate reporting can also result in legal problems with external parties, such as investors or the IRS (Internal Revenue Service). Check out our guide on how to establish a small business...

Unearned revenues occur when a company receives payment for services or goods to be provided in the future. If a company receives payment in December for services rendered in January, the revenue is initially recorded as unearned and then recognized in January. Observe that the...

As in the example above, marginal revenue may increase because consumer demands have shifted and bid up the price of a good or service. Marginal revenue increases whenever the revenue received from producing one additional unit of a good grows faster—or shrinks more slowly—than its...