Beyond Depreciation Expense, any tax-deductible expense creates a tax shield. Now, notice the fact that we are working with EBIT which is earnings before interest and taxes. This means that we haven’t accounted for interest as well as taxes and their effects on the cash flow. ( . Annual...
Consider a virtual account to keep the calculations of the carrying value (book value) of the bond. Under US GAAP both straight line and effective interest method are allowed but the effective interest method is preferred. Let’s walk through what each of these terms mean and how they are...
This amount is $450, or 30% of the total interest of $1,500. Your uncle paid $500 for the bond, so $500 of the amount you receive upon redemption is interest income. Your uncle’s executor included in your uncle’s final return $200 of the interest that had accrued at the...
Modern bookkeepers are increasingly being viewed as unearned revenue strategic partners within organizations, rather than just record-keepers. The shift towards remote work has also prompted the adoption of titles like “Remote Bookkeeping Specialist,” emphasizing the ability to perform bookkeeping tasks from anywhere in the world. During this time, you...
Most of the best accounting software platforms for multiple businesses offer robust mobile apps for dedicated on-the-go usage. This feature is among the most important to look for since, as someone who owns multiple businesses, you’re likely on the move pretty often. Accounting software mobile apps keep you connected...
Balloon amortization involves regular small payments with a large final payment, or “balloon,” at the end of the loan term. This accounting technique is designed to provide a more accurate depiction of the profitability of the business. Amortization can be an excellent tool to understand how borrowing works. It...
In the heart of Los Angeles’ bustling startup ecosystem, our accounting firm emerges as a leading choice for businesses seeking the best CPA near me. From Silicon Beach, to Downtown LA, to the Arts District, we bring CARES Act a wealth of local expertise essential for startups navigating the...
To get a better understanding of what retained earnings can tell you, the following options broadly cover all possible uses that a company can make of its surplus money. For instance, the first option leads to the earnings money going out of the books and accounts of the business...
Recent Comments