Understanding fully depreciated assets is essential for accounting and financial management. It is crucial to keep careful track of an asset’s depreciation over time and recognize when it becomes fully depreciated. By doing so, businesses can accurately assess what does fully depreciated mean their financial position and plan for future investments accordingly.

Which of the following is correct for a fully depreciated asset?

• A fully depreciated asset can have an accounting value of zero, but that hardly means it’s worthless.
• Fully Depreciated Assets are a significant term in finance as they refer to assets for which depreciation expense has been completely recognized by the company over the asset’s useful life.
• The units-of-production method is used for assets that have a limited useful life, such as machinery or equipment.
• Depreciation trends reveal when an asset is nearing the point of diminishing returns.
• The book value is just an accounting device (a trick, even); it’s not the same as the market value.

It was estimated to have a useful life of 10 years and a salvage value of $1,000. The most recent balance sheet reported the machine at its cost of $100,000 minus its accumulated depreciation of $99,000. Hence, the machine’s book value is $1,000 (which is equal to the estimated salvage value). This means that there is no depreciation expense in the current year, and the balance sheet will continue to report the machine’s cost of $100,000 and its accumulated depreciation of $99,000. If the fully depreciated asset continues to be used without improvement expenditures, there will be no further depreciation expense. The asset’s cost and its accumulated depreciation will continue to be reported on the balance sheet until the asset is disposed of.

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The accounting for a fully depreciated asset is to continue reporting its cost and accumulated depreciation on the balance sheet. No further accounting is required until the asset is dispositioned, such as by selling or scrapping it. No impairment analysis can be conducted on it, since it no longer has a carrying amount that can be reduced any further. Suppose a company acquires a new car so that its salespeople can go around selling the company’s products.

• The balance sheet will still reflect the original cost of the asset and the equivalent amount of accumulated depreciation.
• A Fully Depreciated Asset is a term used in finance to refer to an asset that has reached the end of its life cycle, and its accumulated depreciation equals its original cost.
• After five years, the accumulated depreciation would total $10,000, making the asset fully depreciated.
• Most equipment is classified as five-year property under the Modified Accelerated Cost Recovery System (MACRS).
• At its core, equipment depreciation is the gradual loss of value that occurs as assets age, are used, or become outdated.

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Depreciation charges reduce a company’s earnings, which is helpful for tax purposes. All U.S. companies are expected to adhere to the generally accepted accounting principles (GAAP) when using depreciation. The accumulated depreciation account is debited to zero out the asset’s value, and the relevant asset account is credited. A loss on a fully depreciated asset is considered a capital loss, which can be used to offset capital gains from other assets. There are several methods that accountants can use to depreciate assets, including straight-line, declining balance, double-declining balance, sum-of-the-years’ digits, and unit of production.

The half-year convention is used in MACRS to simplify the calculation of depreciation for assets placed in service during the middle of a tax year. On disposal, no gain or loss is recognized because both the cash proceeds and carrying amounts are zero. A fully depreciated asset has zero net book value, which means its cost is fully accounted for in the company’s financial records. You can also use capital losses to offset ordinary income, but only up to a certain amount each year. Most equipment is classified as five-year property under the Modified Accelerated Cost Recovery System (MACRS).

✅ 2. How do you calculate the depreciation of equipment?

It affects everything from maintenance schedules and insurance coverage to replacement timing and capital planning. The double declining balance method is a variation of the declining balance method that uses a higher depreciation rate. MACRS is a tax code that allows businesses to claim a higher depreciation expense in the early years of an asset’s life. An asset can reach full depreciation when its useful life expires or if an impairment charge is incurred against the original cost. If the $10,000 machine from the earlier example is sold for $1,500 after being fully depreciated, the entire $1,500 is a taxable gain. Because this gain is less than the depreciation taken, the entire $1,500 is “recaptured” and taxed as ordinary income.

The sum-of-the-years’-digits method can result in a higher depreciation expense in the early years of an asset’s life. Straight-line method is a common approach to calculating depreciation, where the cost of an asset is spread evenly over its useful life. Depreciation is a way to account for the decrease in value of assets over time. This is done to match the cost of using an asset with the revenue it generates.

Moreover, the treatment of fully depreciated assets during the M&A process can influence the structuring of the deal. Additionally, the acquiring firm must consider the potential tax implications, including depreciation recapture and the impact on future depreciation expenses. Properly accounting for these factors can lead to a more accurate valuation and a smoother integration process post-acquisition. Disposal of fully depreciated assets, on the other hand, involves removing these assets from the company’s books.

Fully Depreciated Assets

The presence of fully depreciated assets can have a nuanced impact on business valuation, influencing how potential investors and acquirers perceive the company’s worth. These assets, while no longer contributing to depreciation expenses, still play a role in the operational capacity of the business. Their continued use can indicate a company’s ability to maximize the utility of its investments, showcasing efficient asset management. However, the understated book value of these assets can lead to a misrepresentation of the company’s true asset base, potentially skewing valuation metrics. In reality, it is difficult to predict the useful life of an asset, so depreciation expenses represent only a rough estimate of the true amount of an asset used up each year. Conservative accounting practices dictate that when in doubt, it is more prudent to use a faster depreciation schedule so that expenses are recognized earlier.

To calculate yearly depreciation for accounting purposes, the owner needs the car’s residual value, or what it is worth at the end of the ten years. Assume this value is $5,000, and the company uses the straight-line method of depreciation. The knowledge of fully depreciated assets allows companies to make strategic decisions about replacing or continuing the use of these assets. Hence, the concept of fully depreciated assets is both a measure of a company’s investment efficiency and a factor in its future capital expenditure planning. The total amount depreciated each year, which is represented as a percentage, is called the depreciation rate.

The declining balance method is another approach to calculating depreciation, where the asset’s value is reduced by a fixed percentage each year. Depreciation in Accounting is a non-cash charge because it doesn’t represent an actual cash outflow. The entire cash outlay might be paid initially, but the expense is recorded incrementally to reflect that an asset provides a benefit to a company over an extended period of time. A fully depreciated asset is a plant asset or fixed asset where the asset’s book value is equal to its estimated salvage value. In accounting, a fully depreciated asset is worth only its salvage value, and there will be no further depreciation expense if the asset continues to be used without improvement expenditures. Since assets are the major components of the business, the full depreciation charged on them may have a significant impact on the financial statements of the company.

It’s recorded as an expense on your income statement, lowering your taxable income and affecting net profit. Miscalculating or overlooking depreciation can skew your financials, potentially misleading stakeholders like investors, auditors, or lenders. Full depreciation refers to the complete use or exhaustion of an asset over its useful life. The asset’s depreciation expense has been fully accounted for over its life by a company.

Should your company decide to pay dividends, the exact amount you distribute nibbles away at the net income’s contribution to retained earnings. Dividends are the slices the statement of retained earnings reports the amount: of the profit pie that shareholders eagerly await, representing a reward for their investment in your company. But bear in mind, this isn’t a compulsory tradition; some companies choose to reinvest profits back into the business instead.

Dividend payments

The statement unearned revenue of retained earnings is a financial statement that summarizes the changes in the amount of retained earnings during a particular period of time. Learn how to build, read, and use financial statements for your business so you can make more informed decisions. As you can see, the beginning retained earnings account is zero because Paul just started the company this year. Likewise, there were no prior period adjustments since the company is brand new. If the company is not profitable, net loss for the year is included in the subtractions along with any dividends to the owners. Note that in a project finance financial model retained earnings goes negative over the life of the project, but that’s okay It is quite standard.

• During the year, the company declared and paid a dividend of $250,000 to its stockholders.
• Ratios like the retention ratio (retained earnings divided by net income) offer additional insights into management’s priorities.
• Also, mistakes corrected in the same year they occur are not prior period adjustments.
• Although this statement is not included in the four main general-purpose financial statements, it is considered important to outside users for evaluating changes in the RE account.
• While the calculation itself is straightforward, the thought process behind how much to retain versus distribute in dividends reflects a company’s long-term strategic planning and fiscal discipline.
• But strike the right balance, and you’re likely to attract investments while still rewarding shareholders.

Example Scenario and Figures

When you subtract dividends from your net income, you’re essentially closing the loop of your retained earnings calculation. It’s a subtraction that underscores a company’s generosity and investor-centric ethos or highlights a strategic choice to harness profits for growth. Your retained earnings can thus be seen as the reserves for future strategy plays or a cushion for financial hiccups.

What is on a retained earnings statement?

When it comes to managing your business’s finances, you can never be too organized. Creating financial statements paints a picture of your company’s financial health. Financial statements help with decision making and your ability to get outside financing.

• A summary report called a statement of retained earnings is also maintained, outlining the changes in RE for a specific period.
• Think of it as the hard-earned result of your business operations—the grand total after expenses bow out of revenues’ spotlight.
• Retained earnings reflect the cumulative amount of net income a company has retained over time, after distributing dividends.
• You will need to list your amount of retained earnings at the end of the previous accounting period.

While the calculation itself is straightforward, the thought process behind how much to retain versus distribute in dividends reflects a company’s long-term strategic planning and fiscal discipline. It’s essential to fine-tune these numbers as they send a strong message about the company’s financial stewardship and future prospects. Calculating the ending retained earnings solidifies your company’s financial narrative, reflecting both past decisions and setting the stage for future investments or debt management. It’s a number that tells a story, so make sure it’s penned with precision and clarity.

What is the impact of a Net Loss on Retained Earnings?

The accountant then subtracts the company’s dividends of $50,000 from the net income to get the change in retained earnings. The difference in retained earnings is $50,000, meaning the company’s retained earnings increased by $50,000 from the previous fiscal year. The retained earnings formula calculates the amount of earnings a company has and keeps in its reserves rather than distributing them as dividends to shareholders. This formula considers the beginning retained earnings, net income or profit/loss, and dividends paid. In addition, the statement of retained earnings accounts for other changes in the company’s equity, such as stock buybacks and issuances. The statement of retained earnings typically includes information about the company’s earnings.

For stakeholders, understanding retained earnings is crucial as it indicates the company’s ability to fund growth, pay down debt, or cushion against future financial uncertainties. This retained capital can be a sign of financial health and long-term sustainability. The statement of retained earnings is a financial document that Financial Forecasting For Startups outlines the changes in a company’s accumulated profits over a specific period.

The group can now calculate X to forecast how much money will be available in the following month. Management would want to know why baking brownies has become more expensive if the percentage was 25% last year. It might be due to rising flour and egg costs, but it might also be due to a shift in the supply chain. Perhaps the new industrial kitchen is farther away from the delivery trucks. Some learners may also qualify for scholarships or financial aid, which will be credited against the program fee once eligibility is determined. HBS Online’s CORe and CLIMB programs require the completion of a brief application.

B. Use Multiple Forecasting Methods for Accuracy

Still, despite its shortcomings, I think the percent of sales method is a useful method worth understanding and being able to apply. Liz’s final step is to use the percentages she calculated in step 3 to look at the balance forecasts under an assumption of $66,000 in sales. Next, Liz needs to calculate the percentage of each account in reference to her revenue by dividing by the total sales.

Demand Forecasting vs. Sales Forecasting: Key Differences & When to Use Each

These are carried forward from the most recent financial statements or adjusted based on separate strategic decisions, such as planned capital expenditures or new debt issuance. The final step involves ensuring the projected balance sheet balances, often by introducing a “plug” figure, which represents the external financing needed or any excess cash available. To project the income statement, the calculated percentages from historical relationships are applied to the sales forecast. For example, if Cost of Goods Sold was historically 50% of sales, and future sales are projected at $120,000, then projected COGS would be $60,000.

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For the sake of example, let’s imagine a hypothetical businessperson, Barbara Bunsen. She operates a specialty cake, army bed, and cinnamon roll shop called “Bunsen’s Bundt, Bunk Bed, Bun Bunker” or “B6” for short. We’ll use her business as a reference point for applying the percent of sales method.

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When preparing a financial prediction using this method, businesses must prepare a plan and select the accounts the final projection must include. Some accounts that businesses may want to forecast include the accounts payable, inventory, accounts receivable, and COGS or cost of goods sold. The Percentage Of Sales Method serves primarily as a tool for financial forecasting and planning, virtually for every scale of organization. It leverages a company’s sales as the key variable to predict its future financial condition, including budgeting for anticipated expenses, capital investments, revenues, and asset requirements. These case studies demonstrate the versatility and effectiveness of the Percentage of Sales Method across various industries.

Improve the percentage-of-sales forecasting with accounts receivable to sales ratio

As AI technology continues to evolve, its influence on sales forecasting will only grow, providing businesses with the insights needed to thrive in an ever-changing market landscape. From the perspective of a financial analyst, AI-driven sales forecasting is a game-changer. It enables the creation of more robust financial models that can account for a wider range of variables and potential scenarios. For instance, an AI system unearned revenue might predict a spike in sales following a positive product review on a major platform, allowing the company to adjust production and inventory accordingly. Most business owners will want to forecast things like cash, accounts receivable, accounts payable and net income.

Business Insights

You need to be aware of the financial line item you wish to analyze and your company’s sales data in order to make a financial prediction using the percentage of sales method. Pro forma statements are incredibly valuable when forecasting revenue, expenses, and sales. These findings are often further supported by one of seven financial forecasting methods that determine future income and growth rates. Today, sales forecasting is an integral part of strategic planning in businesses. It leverages big data, artificial intelligence, and machine learning to not only predict sales but also to understand customer behavior, optimize inventory levels, and inform marketing strategies. The evolution gym bookkeeping of sales forecasting reflects the broader trajectory of business intelligence, where data-driven decision-making is paramount.

Calculate forecasted sales.

• For the percentage-of-sales method to yield accurate forecasts, it is best to apply it only to selected expenses and balance sheet items that have a proven record of closely correlating with sales.
• This forecasting method uses estimated overarching sales growth to determine changes to any financial line items that directly correlate to sales.
• Establishing historical relationships is a key step in the percent of sales method, providing the foundation for future projections.
• These case studies demonstrate the versatility and effectiveness of the Percentage of Sales Method across various industries.
• This includes things like accounts payable, accounts receivable, cash, cost of goods sold (COGS), fixed assets, and net income.

By understanding these relationships, businesses can estimate future financial performance based on anticipated sales growth. This method helps anticipate resource needs and financial outcomes without complex models. The percentage of sales method is a financial forecasting technique that estimates future financial statement items based on historical relationships with sales. This method is widely used due to its simplicity and effectiveness in predicting expenses, assets, and liabilities in proportion to expected sales growth. By applying this method, businesses can efficiently plan for financial needs, manage cash flow, and make informed strategic decisions. This article explores the percentage of sales method, its application, benefits, limitations, and best practices.

• Especially when it comes to creating a budgeted set of financial statements.
• For example, a retail clothing store might find that its COGS is 50% of sales, marketing expenses are 10%, and rent is fixed at $10,000 per month.
• The percentage of sales method refers to a financial forecasting model that enables a business to predict financial alterations based on spending accounts and past and current sales.
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• This method is seen as more reliable because it breaks down the probability of BDE by the length of time past-due.

Projected sales and expense figures provide a basis for departmental budgets, aiding in resource allocation and performance monitoring. The projections can also inform decisions related to inventory management, accounts receivable policies, and capital expenditures, aligning with anticipated business activity. The completed financial projections, generated through the percent of sales method, provide insights for various business functions. These projections serve as a foundational tool for strategic and operational planning. They help visualize the financial landscape a company might face under different sales growth scenarios. The underlying assumption is that the percent of sales method of financial forecasting these historical relationships will remain consistent in the future.

They are commonly presented as a separate line item, providing an indication of the non-operating activities that have influenced the company’s financial performance. Most companies include revenues, gains, expenses and losses in their income statements. Though some of the terms sound similar, there are different uses for gains and losses, as well as for revenues and expenses. Take a look at each combination of terms and how they differ. Unlike gains and losses, revenues and expenses are not opposite financial results of the same activities. Investors and analysts will typically give far more weight to these metrics than losses or gains.

Understanding the Difference Between Revenue and Gain in Finance as per IFRS

• By understanding the different types of revenue and how they are categorized, companies and individuals can better understand their financial situation and make informed decisions.
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• Revenues and expenses provide different kinds of information from gains and losses, or at least information with a different emphasis.
• They are commonly presented as a separate line item, providing an indication of the non-operating activities that have influenced the company’s financial performance.
• The company record revenue when its goods are delivered or services are provided.

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For the past 52 years, Harold Averkamp (CPA, MBA) hasworked as an accounting supervisor, manager, consultant, university instructor, and innovator in teaching accounting online. He is the sole author of all the materials on AccountingCoach.com. For the past 52 years, Harold Averkamp (CPA, MBA) has worked as an accounting supervisor, manager, consultant, university instructor, and innovator in teaching accounting online. Discover the types of business insurance to protect your success.

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A company like Apple might experience top-line growth due to a new product launch like the new iPhone, a new service, or a new advertising campaign that leads to increased sales. Bottom-line growth might have occurred from the increase in revenues, but also from cutting expenses or finding a cheaper supplier. Revenue and gain also have the common characteristic of being affected by economic conditions, such as changes in market demand, competition, and interest rates. Companies must be aware of these conditions and adjust their strategies accordingly to maintain financial health and generate revenue and gain. Gains and losses are the opposing financial results that are produced through a company’s non-primary operations and production processes.

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Taking advantage of a subscription revenue model not only ensures consistent monthly income, it can also lead to a bigger customer base. This is the classification shown on a single-step income statement which reports the operating revenues, nonoperating revenues, and gains in one section of the income statement. Profit can also be called net income, net profit, or “bottom line” because it’s usually the last line on an income statement. Discover 10 fresh financing solutions for small businesses! From crowdfunding to microloans, think outside the box for financial success.

• For example, profit from the sale of real estate is to be treated as capital gain.
• These are all accounting terms that have different meanings in light of an income statement.
• Cost of goods sold is the cost of goods which a company sold to generate that revenue.
• For example, rent income may be received by a company regularly, which is why it will be an income.

What is the difference between total revenue and operating revenue?

This section highlights the key differences between gains/losses and revenue/expenses in terms of timing of recognition and impact on financial statements. In the world of finance and accounting, revenue and expenses play a crucial role in understanding a company’s financial performance. Let’s explore the definitions and sources of revenue and expenses to gain a better understanding of these terms.

Bains and losses represent the financial performance of non-operating activities. Revenues and expenses relate to the core business and often generate the majority of sales and related costs that enable a company to continue to operate. Most companies report such items as revenues, gains, expenses, and losses on their income statements. Though some of the terms will sound similar, there are different practical uses for gains and losses, as well as for revenues and expenses.

What is the difference between ordinary income and operating income?

Revenue is not related to the money collected or cash inflow into the company. The company record revenue when its goods are delivered or services are provided. We can record accrued revenue before the invoices are issued. On the other hand, the company may issue invoices but not record any revenue. For example, a company issue an invoice for a customer’s deposit which is recorded as a liability until goods or service is delivered.

The revenue is recognized when the firm completes the services and invoices the clients. Expenses for the consulting firm may include salaries of consultants, office rent, and marketing costs. The difference between revenue and expenses represents the firm’s profitability. When interpreting gains and losses, it is important to consider the time frame and the nature of the transactions. Understanding the sources of gains and losses is essential in evaluating the financial performance of individuals and organizations.

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A loss will also be recorded if a company is ordered by a judge to pay to settle a lawsuit or if it loses money on a financial investment. Sometimes there is confusion when words revenue,income, gross profit, gain, profit, and net income are used. These are all accounting terms that have different meanings in light of an income statement.

Another way to earn a profit from gain is to simply hold on to an asset and expect difference between revenue and gains it to increase in price over time. Unveil the impact of small loans on bank and small business growth. Discover the benefits and future trends in this insightful analysis.

Financial accounting is governed by accounting rules and regulations such as U.S. GAAP (Generally Accepted Accounting Principles) and IFRS (International Financial Reporting Standards). In an accounting context, the assets of a company’s must be equal to (i.e. balance) its liabilities plus shareholders’ equity. As such, shareholders’ equity represents the company net assets (total assets minus total liabilities) i.e. its net value, the company’s residual value after all liabilities have been paid off. Shareholders’ equity consists of share capital (cf.) plus retained earnings, which is the portion of net income not paid out in dividends. Various business transactions directly impact the components of stockholders’ equity, thereby changing the total equity.

AMT – Alternative Minimum Tax

Held-for-sale assets(HA) are no longer required for operations and are hence expected to be sold off within year. A Corporate Recovery Consultant(CRC) aids businesses in identifying performance improvement opportunities while navigating financial distress or bankruptcy. Disclosure denotes making new or secret information known – widely used in legal documents, business contracts, and accounting practices. Errors and Omissions(E&O) refer to professional negligence, including mistakes, oversights, or carelessness in providing professional services. A Deferred Prosecution Agreement (DPA) is a settlement strategy under which a prosecutor allows the defendant to avoid prosecution by meeting specific requirements. Design-Build-Finance-Operate-Maintain (DBFOM) are projects that bundle design and construction services with operations & maintenance support under one contract agreement.

Calculating Stockholders’ Equity

Aside from stock (common, preferred, and treasury) components, the SE statement includes retained earnings, unrealized gains and losses, and contributed (additional paid-up) capital. Let’s se in accounting assume that ABC Company has total assets of $2.6 million and total liabilities of $920,000. Current liabilities are debts typically due for repayment within one year. Stockholders’ equity is prominently displayed in a company’s financial statements, providing transparency into its ownership structure and financial health.

AVA – Asset Value Adjustment

Learn more about the road ahead in our article, “Your Step-by-Step Guide on How to Become an Accountant”. Check out these basic accounting definitions and start to commit them to memory. That way, when you start your accounting education journey, you’ll already feel like you’re a step ahead and speaking the language. The simple things we do and encounter everyday can actually be related to some level of accounting. You make budgets, count change and check the receipts from the supermarket.

What is accounting in simple terms?

This figure includes the par value of common stock as well as the par value of any preferred shares the company has sold. Shareholders’ equity, as noted, is the total amount that a company could repay shareholders in the event of liquidation. Common stock shareholders are last in line for repayment in the event a public company files for bankruptcy. The number for shareholders’ equity is calculated simply as total company assets minus total company liabilities. Southeastern Oklahoma State University offers an online BBA in Accounting program. Focused coursework in this program prepares students to be successful in accounting and related professions.

Internal Rate of Return (IRR)

Accounting is the process of keeping track of your business’s financial transactions. In accounting, you’ll come across certain titles which appear to bear similar duties but actually https://soulsurvivorinternational.org/2021/08/13/what-is-a-check-register-definition-meaning/ have unique job descriptions. In this section, we’ll briefly review the roles of accountants vs. CPAs and tax professionals. Accounting is like a powerful machine where you input raw data (figures) and get processed information (financial statements). The whole point is to give you an idea of what’s working and what’s not working so that you can fix it. Intangible assets are things that represent money or value, such as accounts receivables, patents, contracts, and certificates of deposit (CDs).

• Since debts are subtracted from the number, it also implies whether or not the company has taken on so much debt that it cannot reasonable make a profit.
• Value Added Tax (VAT) is an indirect tax levied on goods and services consumed.
• These four components utilised to calculate a company’s shareholders equity allow investors to gain a better insight into the company’s financial management.
• However, because accounting is kept on a historical basis, the equity is typically not the net worth of the organization.
• Stockholders’ equity represents the portion of total assets that is left to the stockholders of a corporation after all of its liabilities are paid.
• A temporary difference between the tax basis of an asset or liability and its financial reporting basis, resulting in a potential future tax expense.

• An accountant is a professional with a bachelor’s degree who provides financial advice, tax planning and bookkeeping services.
• Accounting is also considered a science because it is a body of knowledge.
• OE tells you how much equity you have in the company and how much money you’ll take home after paying for the business’s liabilities.
• It must include monetary figures – say for example, $20,000 salaries expense.
• Skills such as these allow MBAs to move fluidly across departments and organizations.

Discover types of accounting, skills, salaries in different jobs, qualifications, and certifications, as well as the steps to getting started. CFI is the global institution behind the financial modeling and valuation analyst FMVA® Designation. CFI is on a mission to enable anyone to be a great financial analyst and have a great career path. In order to help you advance your career, CFI has compiled many resources to assist you along the path.

Every transaction is recorded twice so that the debit is balanced by a credit. Stockholder’s equity pertains to the net assets of a stock corporation It comprises share capital, reserves, and retained earnings. Capital Stock or Share Capital represents contributions from stockholders gathered through the issuance of stocks. Retained Earnings or Accumulated Profits represents company earnings from the time it started minus dividends distributed, and after contribution margin considering other adjustments. Treasury Stocks are shares issued by the company and were later re-acquired. Stockholders’ equity represents the portion of total assets that is left to the stockholders of a corporation after all of its liabilities are paid.

‘Adjustment’ or ‘ADJ,’ in accounting terms, refers to an entry made in the books of accounts related to the correction or alteration of revenues and expenses. Accounting graduates continue to be one of the top majors in demand by businesses. Our undergraduate accounting program provides entry into a well-respected profession that rivals entry into law and medicine without the added entry cost of those professions. So normally I let my accountant deal with all this at my business, but at one of my other companies I need to program a dual-entry accounting system.