Accounting Tools

OCTOBER 21, 2023

Related Courses Working Capital Management Zero working capital is a situation in which there is no excess of current assets over current liabilities to be funded. Working capital is the difference between current assets and current liabilities, and is primarily comprised of accounts receivable , inventory , and accounts payable.

Accounts Receivable 75

Accounts Receivable Accounts Receivable Account Receivables Computation 75

Accounting Tools

OCTOBER 11, 2023

Additional Paid-In Capital Additional paid-in capital is the amount paid by investors in excess of par value on stock sold directly to them by the issuer. Treasury Stock Treasury stock is a contra account that contains the amount paid to investors to buy back shares from them.

Accounting 76

Accounting Accounting Bookkeeping Auditing 76

Accounting Tools

JULY 28, 2023

This information may also be noted in the issuer’s articles of incorporation. Related Articles Capital in Excess of Par The Difference Between Par and No Par Value Stock Companies set the par value as low as possible in order to avoid this theoretical liability. It is common to see par values set at $0.01

Corporate Finance 76

Corporate Finance Accounting Accounting 76

Accounting Tools

JANUARY 22, 2024

If the corporation liquidates , then common stockholders receive their share of the proceeds of the liquidation after all creditors and preferred stockholders have been paid. Common stock is an ownership share in a corporation. The holders of common stock have voting rights at shareholder meetings and the opportunity to receive dividends.

Corporate Finance 73

Corporate Finance Accounting Accounting 73

Counto

JANUARY 6, 2024

In this article, we’ll guide you through the essential documents needed to establish your business presence in Singapore. In this article, we’ll guide you through the essential documents needed to establish your business presence in Singapore. Share Capital Declare the initial paid-up share capital of your company.

Accounting 52

Accounting Accounting 52

Accounting Tools

MARCH 3, 2024

The lender agrees to lend funds to the borrower upon a promise by the borrower to pay interest on the debt, usually with the interest to be paid at regular intervals. A person or business acquires debt in order to use the funds for operating needs or capital purchases. What is a Liability? Thus, debt is a subset of liabilities.

Bookkeeping 75

Bookkeeping Auditing Accounting Accounting 75

Accounting Tools

SEPTEMBER 11, 2023

The formula is: Cash flow from operations ÷ (Long-term debt paid + Fixed assets purchased + Cash dividends distributed) Any result higher than 1 indicates that a firm is generating sufficient cash flow to maintain itself without acquiring additional debt financing or equity funding.

Financial Statements 75

Financial Statements 75

Accounting Tools

DECEMBER 22, 2023

The concept of the present value factor is based on the time value of money - that is, money received now is worth more than money received in the future, since money received now can be reinvested in an alternative investment to earn additional cash. ABC's cost of capital is 8%.

Financial Analysis 75

Financial Analysis Budgeting 75

Accounting Tools

NOVEMBER 26, 2023

How to Account for a Small Stock Dividend When there is a stock dividend, you should transfer from retained earnings to the capital stock and additional paid-in capital accounts an amount equal to the fair value of the additional shares issued.

Accounting 40

Accounting Accounting 40

Accounting Tools

JULY 13, 2023

Related Courses Accountants' Guidebook Bookkeeping Guidebook The Balance Sheet What is a Capital Surplus? A capital surplus is the additional paid-in capital in excess of par value that an investor pays when buying shares from an issuing entity. Related Articles Capital in Excess of Par

Bookkeeping 40

Bookkeeping Accounting Accounting 40

Accounting Tools

SEPTEMBER 7, 2023

When information is aggregated in this manner, a balance sheet user may find that useful information can be extracted more readily than would be the case if an overwhelming number of line items were presented. There is no standardized classification system.

Computation 75

Computation Financial Statements Tax Accounting 75

Accounting Tools

JULY 31, 2023

Leasehold improvements are defined as the enhancements paid for by a tenant to leased space. Examples of leasehold improvements are interior walls and ceilings, electrical and plumbing additions, built-in cabinetry, and carpeting and tiles. Related Courses Accounting for Leases Fixed Asset Accounting What are Leasehold Improvements?

Accounting 75

Accounting Accounting 75

Accounting Tools

SEPTEMBER 11, 2023

Related Courses Accountants' Guidebook How to Audit Equity The Balance Sheet What is Contributed Capital? Contributed capital is an element of the total amount of equity recorded by an organization. Debit the cash account and credit the contributed capital account. Receive fixed assets for stock. Reduce a liability for stock.

Accounts Receivable 40

Accounts Receivable Accounts Receivable Account Receivables Auditing 40

Accounting Tools

JUNE 12, 2023

An alternative approach for calculating total equity is to add up all of the line items in the stockholders' equity section of the balance sheet, which is comprised of common stock , additional paid-in capital , and retained earnings , minus treasury stock.

Financial Statements 75

Financial Statements Accounts Payable Accounts Payable Accounts Receivable 75

Accounting Tools

FEBRUARY 15, 2024

Any additional amount paid in excess of the par value is recorded in the additional paid-in capital account. Related Articles The Difference Between Paid-In Capital and Retained Earnings The Difference Between Authorized and Outstanding Shares What is No Par Value Stock?

General Ledger 40

General Ledger Bookkeeping Auditing Accounting 40

Accounting Tools

AUGUST 2, 2023

For example, it could separately identify the par value of common stock , additional paid-in capital , retained earnings , and treasury stock, with all of these elements then rolling up into the ending equity total. Thus, there are different accounts for the par value of stock, additional paid-in capital, and retained earnings.

General Ledger 74

General Ledger Financial Statements Accounting Accounting 74

Accounting Tools

OCTOBER 1, 2023

Examples of these accounts are accounts receivable , accounts payable , and additional paid-in capital. Related Articles Clearing Account Income Summary Account Suspense Account When these account balances are flushed out at year-end, their balances usually end up in the retained earnings account.

Accounting 76

Accounting Accounting Bookkeeping Accounts Payable 76

Accounting Tools

JULY 30, 2023

Par value is the legal capital per share, and is printed on the face of the stock certificate. par value) 100 Additional paid-in capital 79,900 If Arlington were to only sell the stock for amount equal to the par value, then the entire credit would be to the Common Stock account. The stock has a par value of $0.01.

Accounting 40

Accounting Accounting 40

Accounting Tools

JUNE 7, 2023

Cash Flows from Operating Activities Cash flows from operating activities refer to the primary revenue -generating activities of an entity, such as cash received from the sale of goods or services, royalties on the use of company-owned intellectual property, commissions for sales on behalf of other entities, and cash paid to suppliers.

Financial Statements 75

Financial Statements Payroll Accounts Receivable Accounts Receivable 75

Accounting Tools

MARCH 2, 2024

The trust holds title to the asset, and investors buy trust certificates, thereby providing the trust with sufficient capital to buy the asset. Once the debt is paid off, the title is transferred from the trust to the borrower. While a borrower is paying off the debt, the title to the asset is held in trust.

Corporate Finance 40

Corporate Finance Tax 40

Counto

MARCH 13, 2024

Minimum Paid-up Capital: The minimum paid-up capital is S$1, and the shareholders’ agreement and subscriber shares must be in place. Why Choose a Private Limited Company (Pte Ltd) for Your Singapore Business Venture Are you considering starting a business in Singapore?

Corporation Tax 52

Corporation Tax Tax Financial Statements Accounting 52

Accounting Tools

JULY 16, 2023

A business typically issues a stock dividend when it does not have sufficient cash to pay out a normal dividend , and so resorts to a "paper" distribution of additional shares to shareholders. If the issuance is for a greater proportion of the previously outstanding shares, the transaction is instead accounted for as a stock split.

Accounting 40

Accounting Accounting 40

Accounting Tools

JUNE 16, 2023

It is calculated as the capital given to a business by its shareholders , plus donated capital and earnings generated by the operation of the business, less any dividends issued. Additional Paid-In Capital Additional paid-in capital is the additional amount that shareholders paid for their shares, in excess of par value.

Financial Statements 40

Financial Statements Accounting Accounting 40

Accounting Tools

FEBRUARY 15, 2024

Treatment of a Cash Dividend When dividends are paid in cash, they are subtracted from the equity section of the balance sheet and are also subtracted from the cash line item in the balance sheet, resulting in an overall decline in the size of the balance sheet. Types of Dividends When Are Dividends Paid?

Financial Statements 40

Financial Statements Bookkeeping Accounting Accounting 40

Accounting Tools

JUNE 6, 2023

Cost Method Stock Resale If the treasury stock is resold at a later date, offset the sale price against the treasury stock account, and credit any sales exceeding the repurchase cost to the additional paid-in capital account. A business has no alternative use for excess cash, and so elects to use it on a stock repurchase.

Accounting 40

Accounting Accounting Auditing 40

Accounting Tools

MARCH 19, 2024

This deficit arises when the cumulative amount of losses experienced and dividends paid by a business exceeds the cumulative amount of its profits. How to Interpret an Accumulated Deficit An accumulated deficit signals that an entity is not financially stable, since it requires additional funding. What is an Accumulated Deficit?

Financial Statements 40

Financial Statements Bookkeeping 40

Accounting Tools

APRIL 6, 2024

This contains a calculation of the direct labor costs to be incurred during the budget period, based on estimates of which products will be manufactured and what labor rates will be paid. During periods of rapid growth, working capital can be a strongly negative number, since the company must invest in more accounts receivable than usual.

Budgeting 74

Budgeting Accounts Receivable Accounts Receivable Account Receivables 74

Accounting Tools

SEPTEMBER 22, 2023

To record a stock dividend, transfer from retained earnings to the capital stock and additional paid-in capital accounts an amount equal to the fair value of the additional shares issued. The fair value of the additional shares issued is based on their fair market value when the dividend is declared.

Accruals 40

Accruals Financial Statements Bookkeeping Accounting 40

Accounting Tools

MAY 21, 2023

Instead, it is more commonly recorded in an account called Paid-In Capital In Excess of Par Value. It may also be recorded in an account called Additional Paid-In Capital. This premium is rarely recorded in an account having that name. The account appears in the shareholders' equity section of the balance sheet.

Accounting 40

Accounting Accounting 40

Counto

JANUARY 11, 2024

With low corporate and personal income tax rates, absence of capital gains tax, and no dividend tax, it’s an attractive destination for offshore companies. Additional directors can be local or foreign individuals. Paid-Up Capital: Maintain a minimum paid-up capital of S$1 with no authorised capital required.

Tax 52

Tax Payroll Accounting Accounting 52

Counto

APRIL 15, 2024

Ownership can be transferred, and additional investors can be added easily. Attractive tax exemptions and incentives, such as no tax on capital gains and significant tax relief for new startups. Invest Paid-up Capital: Minimum of S$1 required initially. Investment Needs: Will you need to raise significant capital?

Corporation Tax 52

Corporation Tax Tax 52

Accounting Tools

SEPTEMBER 9, 2023

While a high cash reinvestment ratio might initially appear to indicate that management is committed to improving the business, it could also mean that an excessive amount of investment in fixed assets and working capital is required to run the operation. Additional points regarding the formula are: Fixed asset sales.

Financial Statements 40

Financial Statements 40

Counto

JANUARY 16, 2024

Once a business secures its first grant, it’s more likely to become a recipient of additional grants in the future. Key startup grants in Singapore Grant name Level of Support Eligibility Startup SG Founder Guidance and a startup capital grant amounting to SGD 50,000. Have a minimum paid-up capital of $50,000.

Collections 52

Collections Accounting Accounting 52

Accounting Tools

JUNE 10, 2023

Retained earnings are the profits that a company has earned to date, less any dividends or other distributions paid to investors. The same situation may arise if a company implements strong working capital policies to reduce its cash requirements. A large retained earnings balance implies a financially healthy organization.

Financial Statements 75

Financial Statements Accounting Accounting 75

Accounting Tools

MAY 21, 2023

In addition, the statement provides more meaningful information when it is prepared using the basic accounting principles mandated by the accounting frameworks , such as generally accepted accounting principles or international financial reporting standards.

Financial Statements 74

Financial Statements Accounts Payable Accounts Payable Financial Reporting 74

Accounting Tools

MARCH 2, 2024

In particular, compare the amount of this cash flow to a company's ongoing fixed asset purchasing requirements, to see if it is generating enough cash flow to fund its capital base. In addition, the effects of changes in the various working capital line items on the balance sheet must also be taken into account.

Financial Statements 40

Financial Statements Accounts Payable Accounts Payable Accounts Receivable 40

Accounting Tools

JULY 30, 2023

Related Courses Business Ratios Guidebook Treasurer's Guidebook Working Capital Management What is the Net Working Capital Ratio? The net working capital ratio is the net amount of all elements of working capital. The calculation of the net working capital ratio would indicate a positive balance of $300,000.

Accounts Payable 40

Accounts Payable Accounts Payable Accounts Receivable Accounts Receivable 40