Current vs Capital Accounts: What’s the Difference?
Each owner’s equity account will increase by $ 50,000 for a $ 25,000 balance per owner. The components of the capital account include foreign investment and loans, banking, and other forms of capital, as well as monetary movements or changes in the foreign exchange reserve. The capital account flow reflects factors such as commercial borrowings, […]
Allowance for Doubtful Accounts and Bad Debt Expenses Cornell University Division of Financial Services
Once the company has identified accounts that are likely to be uncollectible, it needs to estimate the amount of uncollectible accounts. Accounting for uncollectible accounts involves estimating the amount of uncollectible accounts and creating an allowance for doubtful accounts. Suppose a company generated $1 million of credit sales in Year 1 but projects that 5% […]
Adjusting Journal Entries: Definition & Types
Some business transactions affect the revenue and expenses of more than one accounting period. For example, a service providing company may receive service fee from its clients for more than one period or it may pay some of its expenses for many periods in advance. All revenue received or all expenses paid in advance cannot be reported […]
Alarming Divergence Between Stocks And Bonds
In general, corporate bonds are considered to have a higher risk than U.S. government bonds. As a result, interest rates are almost always higher on corporate bonds, even for companies with top-flight credit quality. The difference between the yields on highly-rated how to add a payment link to a xero invoice corporate bonds and U.S. […]
Dalal Associates CPAs PC: A professional tax and accounting firm in Westbury, New York: About Us
What other CPA fees might you incur when it comes time to prepare your taxes? Take a look at this average CPA fee schedule from CBS News featuring common occurrences that cost consumers extra money come tax time. They estimate the average cost for professional tax preparation as ranging between $152 to $261 depending upon […]
Tax Tips for Teachers: Deducting Out-of-Pocket Classroom Expenses
Further, educators who earn money as independent contractors will need to keep track of their expenses, some of which may be tax deductible. That’s why so many people use tax prep software and services to file their taxes in order to avoid making costly mistakes. But that tax prep doesn’t come cheap—it costs on average […]
Accounting equation Wikipedia
Let’s assume a company is selling orange juice, you count the expense it incurs in purchasing the plastic bottles, oranges, and sugar. You match the expense of the orange juice ingredients with the revenue earned from the sale of orange juice. All over the world, there is a global adherence to the double-entry accounting system. […]
OEM Definition & Meaning
OEM refers to the original equipment manufacturer, which is a company that produces components or products for use in other companies’ end products. These components are often of high quality and meet the specifications the purchasing company requires. While OEM products may not carry the branding of the purchasing company, they are genuine and legitimate […]
Accrued Interest Overview and Examples in Accounting and Bonds
Issuers typically make payments on bonds every quarter or six months. If you sell the bond, the price you sell it for should take into account the accrued interest. While some very small or new businesses use cash accounting, companies normally prefer the accrual accounting method. Accrual accounting gives a far better picture of a […]
Best Short-Term Investment Options Right Now
Unlike long-term investments, which are held for an extended period, short-term investments provide liquidity and flexibility to investors, ensuring that funds are readily available when needed. Short-term investments are assets that can be converted into cash or can be sold within a short period of time, typically within 1-3 years. Common instruments for short-term investing […]