Look for other statements to get an inner view of the firm, go through their last ten years of statements, and try to see a trend coming forward. It will help you understand normal balance the risk-return ratio even before investing in the organization. Similarly, it highlights both the present and accrued expenses – expenses…
Whether you are the one withholding retainage or it is withheld from your payments, accounting for retainage requires an addition to the chart of accounts. Retainage doesn't belong in accounts receivable or payable, because it is not collectible (or payable) until the contract conditions have been met for its release. The percentage of completion method…