<p>On the daily chart below, we can
see that after the strong <a target=“_blank“ href=“https://www.forexlive.com/news/sp-global-february-flash-services-pmi-505-vs-472-expected-20230221/“>US
PMIs</a> the price has broken the key 1920 <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“>support</a> level that was previously a
strong <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“>resistance</a> for the buyers. </p><p>The <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-moving-averages-20220425/“>moving
averages</a> have now crossed to the downside signalling a change in trend. The
price has been consolidating just below the 1920 level as the market probably
awaits the key <a target=“_blank“ href=“https://www.forexlive.com/EconomicCalendar“>economic
data</a> in March to see if February was just a blip or a real reacceleration in
economic activity and inflation due to the easing in financial conditions.</p><p>In the 4
hour chart below, we can see that the price has erased the losses seen after
the hot <a target=“_blank“ href=“https://www.forexlive.com/news/us-january-pce-core-inflation-47-vs-43-expected-20230224/“>US
PCE</a> report
last Friday. It may be a sign that the market wants more data to confirm the
change in the expectations and archive the current talks of seasonal factors
skewing the data. </p><p>A retest
of the 1920 level may be in the cards and that will be the last line of defence
for the sellers, while a breakout to the upside may give the buyers some
conviction to target the swing level at 1960, but such scenario looks unlikely
unless the economic data miss expectations.</p><p>In the 1 hour chart, we can see
that the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-divergence-20220429/“>divergence</a> between the price and the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-macd-20220427/“>MACD</a> was signalling a weakening
selling momentum which ultimately led to the current pullback. </p><p>There are two possible spots
where the sellers may start piling in. The first one is the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-trendlines-20220406/“>trendline</a> and the second one is the 1920
resistance. Given the data, it’s unlikely to see the price breaking up the 1920
level with conviction, so the sellers should remain in control going forward.</p>

This article was written by ForexLive at www.forexlive.com.

<p style=““ class=“text-align-justify“>If you’re wondering why the US jobs report isn’t going to come out on the first Friday in March this year, do check out Adam’s informative post below:</p><ul><li><a target=“_blank“ href=“https://www.forexlive.com/news/why-there-wont-be-a-non-farm-payrolls-report-next-week-20230224/“ target=“_blank“ rel=“follow“>Why there won’t be a non-farm payrolls report next week</a></li></ul>

This article was written by Justin Low at www.forexlive.com.

<p>What is a
Contra Account?</p><p>A general
ledger account, along with a balance that differs from the typical compensation
for that account classification is referred to as a contra account. By using a
contra account, a <a target=“_blank“ href=“https://kowela.com/“ target=“_blank“ rel=“follow“>business</a> can record both the initial amount and a decrease to
disclose the net amount as well. The term „net amount“ is frequently
used interchangeably with „carrying amount“ or „net realizable
amount.“</p><p>Find out why
using contra accounts properly, coupled with a matched account, is essential
for accurate <a target=“_blank“ href=“https://kowela.com/signup“ target=“_blank“ rel=“follow“>accounting and financial analysis</a>.</p><p>HOW CONTRA
ASSET ACCOUNTS WORK </p><p>In
double-entry accounting, contra-asset accounts are practical instruments.
Additionally, they assist in maintaining the books‘ accuracy and leave a clean
financial trail for later analysis and reporting. </p><p>For
instance, when it comes to fixed assets, it is typical to preserve the purchase
price of a piece of equipment as a historical cost in the debit asset account.</p><p>The
cumulative depreciation contra-asset account, which is a credit account, is
where most accountants decide to record an item’s depreciation during its
useful life. </p><p>The
equipment would be included on the balance sheet at its historical cost, with
the cumulative depreciation being subtracted to represent the asset’s true
worth.</p><p>Types used
in Contra Assets</p><p>Although the
most typical counter asset account is cumulative depreciation, the following
may also be applicable depending on the business.</p><p>Allowance
for Doubtful Accounts</p><p>Because it
lowers the value of the accounts receivable (AR) account on the general ledger,
the allowance for suspicious accounts is a counter asset. When a business
offers things on credit, management frequently assumes some consumers won’t pay
and plans to write off bad debt.</p><p>Obsolete
Inventory</p><p>The outdated
inventory reserve, which lowers the total inventory value on the balance sheet,
is far less typical. A reserve equivalent to the allowance for doubtful
accounts is held in this counter account. There will be a matching credit
against the outdated inventory contra account for each debit against the
inventory account.</p><p>Accumulated
Depreciation</p><p>The amount
of depreciation on a fixed asset up to that point is recorded in the
contra-asset account, known as accumulated depreciation. Examples of fixed
assets include structures, equipment, furniture, cars, and office supplies. The
balance sheet’s cumulative depreciation account shows and lowers the total
fixed assets.</p><p>FINAL
INSIGHT</p><p>In
double-entry accounting, a contra asset is a negative account used to lower the
balance of a matched asset account in the general ledger.</p><p>A contra
account always offsets the balance of a related account. Therefore, any contra
account item is shown on a company’s balance sheet under the matched tab.</p><p>Users of the
financial statement can obtain comprehensive information from the contra
accounts in the balance sheet. However, users might be unable to perceive how
each element has performed over time if the numbers are provided at net value. </p><p>By utilizing
the idea of a contra account, it is possible to quickly and easily determine
the history of specific debits and credits in the books of a particular
organization and how they connect by merely looking at the accounting records
of that company.</p>

This article was written by ForexLive at www.forexlive.com.

<p>An appropriation account displays the allocation of resources
among partners, <a target=“_blank“ href=“https://kiexo.com/“ target=“_blank“ rel=“follow“>shareholders</a>, and departments within a company. First, an
appropriation account for businesses demonstrates how earnings are allocated
and kept. It illustrates how revenues are shared among participants in
partnerships. Finally, it proves to governments how money is allotted to
particular projects and agencies.</p><p>A P&L appropriation account’s goal is to
„appropriate,“ or distribute, the company’s <a target=“_blank“ href=“https://kiexo.com/signup“ target=“_blank“ rel=“follow“>profits</a>
to shareholders and identify the portion that will be held back for the
following fiscal year. </p><p>As previously mentioned, the account includes any
transfers made to the company’s reserve account for emergency usage and any
corporation taxes and dividends that are due. Retained earnings, which may be
put back into the company’s operations, are what is left.</p><p>It is essential to
remember that:</p><p>The lawful corporation tax rate in the area determines corporate
taxes.</p><p>The number of preferred shares and the amount being issued per
share define the preferred dividends.</p><p>The number of common shares and the amount being issued per
share determine ordinary dividends.</p><p>The changes and items that
are part of this account are as follows:</p><p>Net Profit: This is an opening balance of the
appropriation account. After the appropriate adjustments have been made for the
period, this sum is deducted from the Profit & Loss account.</p><p>Interest on Capital: The business will be
charged interest on the capital invested as a partner in the industry.</p><p>Interest in Drawings: This generates
revenue for the company. Any capital withdrawals made by the partner during the
year will incur interest charges from the corporation.</p><p>Partner’s Salary: This expenditure is
pre-agreed according to the partnership agreement.</p><p>Partner’s commission: This is a pre-agreed
business expenditure and is under the partnership agreement.</p><p>Net Profit sent to Partner’s Account: This represents the
total Profit after all the adjustments mentioned earlier have been made.</p><p>THE SIGNIFICANCE OF APPROPRIATE ACCOUNTS</p><p>·
The number of profits allocated among different heads is shown
in this account.</p><p>·
It displayed the number of earnings dispersed as dividends and
added to reserves.</p><p>·
It details the earnings‘ distribution to partners and the
different modifications made during the year.</p><p>What is the Process of Appropriation Account?</p><p>After creating the profit and loss account, the appropriation
account is created. For partnership businesses, it is created to demonstrate
how earnings are divided among the partnership’s participants.</p><p>The intent for creating this account in the case of an LLC is
the same, but the format is different. Starting with the annual Profit before
taxes, we will deduct corporation taxes and dividends to arrive at the yearly
retained profits.</p><p>The government uses the appropriation account to display the
funds allotted to a specific project. Any costs are subtracted from the money
allocated.</p><p>FINAL INSIGHT </p><p>The goal is to enable profit adjustments so that the final
revenue may be distributed among the partners under the agreed-upon terms.</p><p>It is only a nominal account which signifies that all of
the company’s spending items are debited, and all of its income items are
credited.</p>

This article was written by ForexLive at www.forexlive.com.