ARE 2210 Study Guide - Midterm Guide: Income Tax, Bookkeeping, Fixed Cost
29 Jan 2020
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Text-keeping the books-except pages 110,111,112,113 plus all other assigned readings and handouts and class lecture material. Answer all questions on exam, not worth it to leave blank. Hiring a bookkeeper, cpa, accountant; computer software can only do so much; always keeping documentation of workers. Income- all value (not just $) received by your business unless specifically listed as not income by the irs. Bartering: the exchange of goods/services without money changing hands. Expenses- all $ paid out by your business (know examples of each kind) Fixed: does not change over time,generally carry on regardless of production (ex. Variable: generally tied to product or service, a function of production. Be able to identify whether a given expense is fixed/variable. Depreciation: getting your money back over time. Is it owned by the business? (leased car, not owned, therefore not depreciable) Must have a useful life that extends substantially beyond the year you place it in service.
