The company's credit rating and ultimately the debenture's credit rating impacts the interest rate that investors will receive. Credit-rating agencies measure the creditworthiness of corporate and government issues. These entities provide investors with an overview of the risks involved in investing in debt. Private businesses and governments sometimes issue debt securities to raise additional capital.…
For example, if a fixed asset was entered as an expense, it can cause the opening balance equity account to be incorrect. To fix this issue, the bookkeeper should review the data entry process and make sure that all accounts are entered correctly. The Chart of Accounts is a list of all accounts used by…
A corporation has most of the rights and obligations of an individual, such as being able to enter into contracts, hire employees, own assets, incur obligations, and pay taxes. The interests of shareholders are represented by a board of directors, which they elect. An LLC, or limited liability company, provides business operators the protections usually…
The percentage of completion method recognizes revenue based on the percentage of the contract that has been completed. This method is used for long-term contracts where the outcome can be reliably estimated. For example, if a customer orders a subscription-based service, revenue can be recognized when the service is provided to the customer, and the…
Such businesses aim to cover their fixed costs and have a reasonable return on equity by achieving a larger gross profit margin from a smaller sales base. Net profit is the dollar figure that shows the profit that remains after subtracting the cost of http://britishbullmastiffleague.com/pages/clubhistory.html goods sold, operating expenses, taxes, and interest on debt. Gross…
Generally accepted accounting principles (GAAP) describe a standard set of accounting practices. GAAP are endorsed by organizations including the Financial Accounting Standards Board and the U.S. One well-known alternative is International Financial Reporting Standards (IFRS).In the United States, privately held companies are not required ap contact meaning to follow GAAP, but many do. However, publicly…
By understanding each client’s unique situation, at Profit Line we are is able to develop proactive tax planning strategies that maximize benefits and minimize liabilities. At Acuity, we specialize in personalized accounting solutions for entrepreneurs. With over 2,000 businesses served, we’ve got the experience you need.We help you grow by taking care of your finances,…
In real estate, net operating income (NOI) is the total income of a revenue-generating property, minus the total operating expenses. Investors use the net operating income formula figure to determine the profitability of a property and to help make investment decisions. NOI is generally used in the real estate market to assess a property's ability…