Accountancy Reserve and Surplus

The preceding is, indeed, correct IASB usage, but be aware in the U.S., under U.S. Generally Accepted Accounting Principles, “provision” refers to a debit balance, not a credit balance. “Provision” is a dangerous word to use in attempting to achieve clear communications in conversations with U.S. and IASB conversations. The source of funding for a […]

Amortized Loan: What It Is, How It Works, Loan Types, Example

The monthly payment can also be calculated using Microsoft Excel’s “PMT” function. The user inputs the interest rate, number of payments over the life of the loan, and the principal amount. When you revolve a balance, you end up making a minimum payment each month (like with credit cards) and are charged interest on the […]

Just in Time Inventory The Ultimate Guide for 2023

Their clients can customize their orders to their heart’s content which gives a great sense of exclusivity to their products. They value transparency — customers make orders with complete knowledge about the length of the production process. This allows them to develop great relationships with their customers while giving each order 100% care and attention. […]

Independent Contractors

This might be on a temporary basis, for a specific project, or for certain duties on an ad hoc basis. The earnings of a person who is working as an independent contractor are subject to self-employment tax. To find out what your tax obligations are, visit the Self-Employed Individuals Tax Center. There are advantages […]

Yellen credits economy’s resilience for the rise in long-term bond yields

J.B. Maverick is an active trader, commodity futures broker, and stock market analyst 17+ years of experience, in addition to 10+ years of experience as a finance writer and book editor. This website is using a security service to protect itself from online attacks. There are several actions that could trigger this block including submitting […]

Simple bookkeeping for small business owners

A business account also allows you to accept credit card payments and establish business credit. In addition, you may eventually want to grow your business―having a business bank account can be an important sole trader bookkeeping factor if you want to take out a loan or set up a line of credit. It’s not uncommon […]

What does it mean to capitalize accrued interest?

The approach chosen should be selected to provide a close approximation of the typical amount committed throughout the period. In other words, the firm must have made commitments of resources that could have been avoided or redirected into retirement of debt such that interest charges could have been reduced. Most accountants treat the acquisition of […]

Where Does Prepaid Insurance Go on a Balance Sheet: A Comprehensive Guide

The same applies to many medical insurance companies—they prefer being paid upfront before they begin coverage. A current asset which indicates the cost of the insurance contract (premiums) that have been paid in advance. It represents the amount that has been paid but has not yet expired as of the balance sheet date. This is […]