If the cash consideration more than treasury stock, we need to record additional paid-in capital. We usually use the company stock market value to record the transaction. But if the stock market value is not available, we can use the asset’s fair value. If assets fair value also not available, management can determine the assets […]
Categoría: Bookkeeping
Xero doesn’t provide a phone number on its customer support page, but a representative will call you if necessary. This is a serious drawback if you want to be able to pick up the phone and talk through an issue or are new to accounting software and have lots of questions. Users that are new […]
Put simply, a company’s net profit margin is the ratio of its net profit to its revenues. When calculating net margin and related margins, businesses subtract their COGS, as well as ancillary expenses. Some of these expenses include product distribution, sales representative wages, miscellaneous operating expenses, and taxes. Put simply, it’s the percentage of net […]
Your petty cash fund should be tracked and updated regularly to prevent theft or overspending. As you would with your business’s more significant finances, you’ll want to keep accurate records of where the money is coming from and going. When a petty cash fund is in use, petty cash transactions are still recorded on financial […]
In accounting and finance, leverage is the use of a significant amount of debt to purchase an asset, operate a company, acquire another company, etc. While these benefits can be enticing, it’s essential not to overlook the potential pitfalls of using financial leverage. Let’s consider this; suppose an investor borrows $1,000 at an interest rate […]
If you would like the name of the asset, or General Asset Account (GAA) included in the title of the depreciation schedule, enter the name in this field. Suppose an asset for a business cost $11,000, will have a life of 5 years and a salvage value of $1,000. A life interest in property, an […]
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What Is Amortization?
That means that the same amount is expensed in each period over the asset’s useful life. Assets that are expensed using the amortization method typically don’t have any resale or salvage value. Negative amortization is when the size of a debt increases with each payment, even if you pay on time. This happens because the interest […]
Although retained earnings are not themselves an asset, they can be used to purchase assets such as inventory, equipment, or other investments. Therefore, a company with a large retained earnings balance may be well-positioned to purchase new assets in the future or offer what is bond price definition of bond price bond price meaning increased […]
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Opting for freelancers can be cost-effective, as individuals or companies bid on projects, giving you the bookkeeping advantage of selecting from competitive offers. However, the drawback lies in the lack of oversight, as the work may be subcontracted to other freelancers, potentially compromising standards and qualifications. SafePay provides payment protection on our online freelancing site, […]