Many great business owners are always on the lookout for new business tax write-offs. There are many tax deductible expenses that are straightforward. Items such as depreciation, interest, and cost of goods sold. These expenses happen in the normal course of business and show up on your business tax return on the income statement.
Assertions are claims made by business owners and managers that the information included in company financial statements — such as a balance sheet, income statement, and statement of cash flows — is accurate. These assertions are then tested by auditors and CPAs to verify their accuracy.
A post-closing trial balance is the final trial balance prepared before the new accounting period begins. Used to make sure that beginning balances are correct, the post-closing trial balance is also used to ensure that debits and credits remain in balance after closing entries have been completed.
Horizontal analysis, also known as trend analysis, is used to spot financial trends over a specific number of accounting periods. Horizontal analysis can be used with an income statement or a balance sheet.
At least two accounting periods are required for a valid comparison, though in order to...