Accounting Tools

FEBRUARY 1, 2024

What is a Credit Rating? A credit rating is a standard score assigned to an entity or its securities by a credit rating agency , based on a review of its financial condition. Conversely, an entity given a low score may not be able to secure any debt financing at all.

Collections 40

Collections 40

Accounting Tools

JULY 11, 2023

Related Courses Credit and Collection Guidebook Effective Collections What is Financial Information? This information is use to derive estimates of credit risk by creditors and lenders. Related Articles Credit Analysis Credit Granting Procedure Credit Policy Sample

Financial Statements 74

Financial Statements Collections 74

Counto

MARCH 6, 2024

Ways to Get a High Business Credit Score in Singapore Similar to personal credit scores, business credit scores provide a snapshot of your company’s creditworthiness and financial health. The majority of small businesses require a minimum score of 75 to access credit with favourable interest rates.

Payroll 52

Payroll Tax Billing Invoicing 52

Accounting Tools

MAY 15, 2024

Other offering costs cover the printing of prospectuses , exchange listing fees, registration fees, and initial credit rating agency fees (if an offering involves the sale of bonds ). Offering costs can be so substantial that they make it impossible for a smaller entity to issue securities.

Corporate Finance 40

Corporate Finance Accounting Accounting 40

Accounting Tools

SEPTEMBER 7, 2023

The interest rate may be fixed over the life of the note, or vary in conjunction with the interest rate charged by the lender to its best customers (known as the prime rate ). Many notes payable require formal approval by a company’s board of directors before a lender will issue funds.

Accruals 75

Accruals Accounts Payable Accounts Payable Auditing 75

Accounting Tools

JULY 29, 2023

Supervises Treasury staff Related Articles Cash Flow Forecasting Concentration Banking Hedge Funds and How They Work How to Get Financing from a Bank (podcast) Lockbox System Working Capital Management (podcast) Should have a thorough understanding of derivatives, hedging, investments, bank account management, and international funds flows.

Corporate Finance 75

Corporate Finance Accounting Accounting 75

Accounting Tools

JUNE 21, 2023

Related Courses Accounting for Investments Corporate Finance GAAP Guidebook The issue price of a bond is based on the relationship between the interest rate that the bond pays and the market interest rate being paid on the same date. The basic steps required to determine the issue price are noted below.

Corporate Finance 75

Corporate Finance Accounting Accounting 75

Accounting Tools

APRIL 6, 2024

Payroll Processing A specialized group collects time worked information from employees , as well as pay rate information from the human resources department, calculates tax and other deductions from employee pay, and issues net pay amounts to employees, either in cash or via checks , pay cards, or direct deposit. They are as follows: Credit.

Accounting 75

Accounting Accounting Budgeting Financial Statements 75

Accounting Tools

MARCH 7, 2024

When constructing an expected present value of future cash flows , one should use a credit-adjusted risk-free rate to discount cash flows to their present value. Thus, the credit standing of a business may impact the discount rate used. Determine the credit-adjusted risk-free rate.

Financial Statements 40

Financial Statements Accounting Accounting 40

Accounting Tools

APRIL 16, 2024

Incorrect Expense Reserves A more subtle cooking the books practice is setting up expense reserves , such as the allowance for doubtful accounts , that do not reflect the actual loss rate. Related Articles Big Bath Creative Accounting Earnings Management Income Smoothing Managed Earnings

Auditing 74

Auditing Invoicing Accounting Accounting 74

Accounting Tools

APRIL 25, 2024

Here are a number of actions that can cause changes in working capital: Credit Policy A company tightens its credit policy , which reduces the amount of accounts receivable outstanding, and therefore frees up cash. A looser credit policy has the reverse effect. However, there may be an offsetting decline in net sales.

Collections 40

Collections Accounts Payable Accounts Payable Accounts Receivable 40

Accounting Tools

APRIL 17, 2024

When a company issues bonds , investors may pay more than the face value of the bonds when the stated interest rate on the bonds exceeds the market interest rate. Accordingly, investors are willing to pay more than the face value of the bonds, which drives down the effective interest rate that they receive.

Corporate Finance 40

Corporate Finance Accounting Accounting 40

Accounting Tools

MARCH 28, 2024

A lender is an entity that makes cash loans to other entities or individuals in exchange for either a fixed or variable interest rate and a promise of repayment. For example, a lender may specialize in mortgages to individuals, or lines of credit to businesses. What is a Lender?

Corporate Finance 40

Corporate Finance 40

Accounting Tools

DECEMBER 20, 2023

When an issuer has a high default risk, it must pay a significantly higher interest rate , and may have trouble obtaining financing at all. Default risk also applies to the credit granted by a supplier to its customers. How to Measure Default Risk Default risk is measured with the ratings issued by credit rating agencies.

Corporate Finance 40

Corporate Finance Collections 40

Accounting Tools

OCTOBER 24, 2023

The following are considered to be efficiency ratios: Accounts Receivable Turnover Accounts receivable turnover is calculated as credit sales divided by average accounts receivable. Related Articles Asset Turnover Ratio Cash Turnover Ratio Investment Turnover Ratio Return on Operating Assets Sales to Working Capital Ratio

Accounts Payable 75

Accounts Payable Accounts Payable Accounts Receivable Accounts Receivable 75

Accounting Tools

MAY 4, 2024

From historical experience, the company accountant applies an estimated 3% bad debt percentage to the 0-30 days bucket, a 9% bad debt rate to the 31-60 days bucket, and a 25% rate to the 61-90 days bucket. This application of the aging method results in an estimated uncollectible accounts receivable amount of $5,000.

Accounts Receivable 40

Accounts Receivable Accounts Receivable Account Receivables Reconciling 40

Accounting Tools

JUNE 20, 2023

A lender may be more willing to grant credit under a recourse loan at a lower interest rate than would be the case with a non-recourse loan, since the lender's risk of repayment is reduced under a non-recourse situation. Since the lender has no recourse above the amount of the collateral, it is too risky to extend additional credit.

Corporate Finance 75

Corporate Finance Tax Accounting Accounting 75

Accounting Tools

FEBRUARY 8, 2024

What is a Credit Account? A credit account is an open account that a buyer has with a supplier or store, under which the buyer can make purchases and pay for them at a later date. The store granting this credit would notify the buyer when payments were due, usually when the buyer next came into the store.

Accounting 40

Accounting Accounting Collections Accounts Receivable 40

FinOps in Practice

SEPTEMBER 10, 2023

In this article, we describe Process 2 – Feature engineering, or the development of features. based on the subject area: body mass index, number of overdue credit payments per year, movie rating on IMDb, etc. Please, find the whole scheme, which describes key MLOps processes here.

FinOps 130

FinOps FinOps 130

Accounting Tools

JULY 27, 2023

Related Courses Corporate Finance Credit and Collection Guidebook Treasurer's Guidebook What is Credit Enhancement? Credit enhancement is any action taken to improve one’s creditworthiness. By taking these steps, an organization may be able to increase the amount it can borrow, as well as reduce the interest rate it is charged.

Corporate Finance 40

Corporate Finance Collections 40

Accounting Tools

NOVEMBER 4, 2023

Related Courses Corporate Cash Management Corporate Finance Treasurer’s Guidebook What is a Credit Facility? A credit facility is a preapproved loan that can be drawn down at need. A business typically has a credit facility in place with its bank in order to fund its working capital needs on an ongoing basis.

Corporate Finance 40

Corporate Finance 40

Accounting Tools

JANUARY 24, 2024

One reason for the deep discount is that the stated interest rate on the bond is well below the current market rate. Another possible reason is that the issuer has quite a low credit rating , so that investors demand a high effective interest rate in order to hold the issuer’s bonds.

Corporate Finance 40

Corporate Finance Accounting Accounting 40

Accounting Tools

AUGUST 27, 2023

It is commonly sold at a discount from face value , with the discount (and therefore the interest rate ) being higher if the term is longer. Because there is no collateral on the debt, commercial paper is only an option for large companies having high-level credit ratings from a recognized credit rating agency.

Corporate Finance 40

Corporate Finance Deposits Billing 40

Accounting Tools

JULY 30, 2023

Its tax rate is 20%, so it reports the gain net of taxes, at $800,000. Note that, though the income tax included in these net calculations is usually an expense , it may also be a credit, so that any of the preceding items presented net of tax would include the tax credit. Related Articles Interperiod Tax Allocation

Tax 75

Tax Financial Statements Accounting Accounting 75

Accounting Tools

JUNE 10, 2023

The following table contains a number of standard accounting payment terms, what they mean, and the effective annual interest rate being offered (if any). Thus, terms of "net 10 EOM" mean that payment must be made in full within 10 days following the end of the month.

Accounting 74

Accounting Accounting Cash Collection Accounts Payable 74

Accounting Tools

OCTOBER 26, 2023

A discount from the face value of a bond occurs when investors want to earn a higher rate of interest than the rate paid by the bond, so they pay less than the face value of the bond. There is nearly always a discount or premium associated with a bond, since interest rates are continually fluctuating.

Corporate Finance 40

Corporate Finance Accounting Accounting 40

Accounting Tools

JANUARY 9, 2024

If the issuer of debt does not repay investors on the maturity date , the instrument will be in default , which will have significant negative repercussions for the credit rating of the issuer. Related Articles Maturity Date Maturity Value

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40

Accounting Tools

AUGUST 29, 2023

Because of the extra security provided to the lender by having collateral, the amount borrowed may be higher and/or the associated interest rate may be reduced. There is no collateral associated with credit card debt, which (in part) explains the high interest rates charged by credit card providers.

Corporate Finance 40

Corporate Finance 40

Accounting Tools

OCTOBER 4, 2023

Related Courses Corporate Finance Treasurer's Guidebook What is the Prime Rate? The prime rate is the interest rate that a commercial bank charges its best customers. A smaller organization can expect to pay several percentage points above the prime rate, since there is a higher risk of default.

Corporate Finance 40

Corporate Finance 40

Accounting Tools

OCTOBER 7, 2023

Related Courses Corporate Cash Management Corporate Finance What is a Variable Interest Rate? A variable interest rate is an interest rate that changes over time, typically in relation to an underlying benchmark, such as the prime rate.

Corporate Finance 40

Corporate Finance 40

Accounting Tools

JULY 24, 2023

Related Courses Corporate Finance Credit and Collection Guidebook Treasurer's Guidebook What are Credit Terms? Credit terms are the payment requirements stated on an invoice. This is especially common for cash-strapped businesses, or those that have no backup line of credit to absorb any short-term cash shortfalls.

Corporate Finance 40

Corporate Finance Invoicing Accounts Receivable Accounts Receivable 40

Accounting Tools

JULY 14, 2023

Related Courses Corporate Cash Management Corporate Finance Treasurer's Guidebook What is a Line of Credit? A line of credit is an agreement between a lender and a borrower to issue cash to the borrower as needed, not to exceed a certain predetermined amount. Line of Credit Features Several aspects of a line of credit are noted below.

Corporate Finance 40

Corporate Finance Auditing Accounts Receivable Accounts Receivable 40

Accounting Tools

MAY 19, 2023

Related Courses Credit and Collection Guidebook What is a Credit Limit? A credit limit is the maximum amount of credit offered to a customer. The amount of a credit limit is established by the credit department. Example of a Credit Limit For example, a supplier grants a credit limit of $5,000 to a customer.

Financial Statements 40

Financial Statements Collections 40

Accounting Tools

AUGUST 8, 2023

Related Courses Corporate Cash Management Corporate Finance Treasurer's Guidebook What is Revolving Credit? A revolving credit arrangement sets a maximum available amount of credit , which a borrower can borrow against, pay down and borrow again, as needed.

Corporate Finance 40

Corporate Finance Collections 40

Accounting Tools

APRIL 18, 2024

As an alternative to payment, the income tax liability can be reduced through the application of offsetting tax credits granted by the applicable government entity. Since tax credits typically expire after a period of time, one must pay close attention to which ones are available and can be applied to an income tax payable.

Tax 40

Tax Expense Reports Accounting Accounting 40

Accounting Tools

NOVEMBER 7, 2023

It is derived by multiplying the price paid by the sales tax rate. In this case, the initial collection of sales taxes creates a credit to the sales taxes payable account, and a debit to the cash account. Related Articles How to Account for Sales Tax Paid on Inventory Sales Taxes Payable They are noted below.

Tax 75

Tax Collections Accounting Accounting 75

Accounting Tools

SEPTEMBER 4, 2023

For example, looser credit results in a larger investment in accounts receivable , which consumes cash. Use the corporate investment policy for allocating excess cash to various types of investments, depending on their rates of return and how quickly they can be converted into cash. Grant credit. Credit rating agency relations.

Budgeting 40

Budgeting Accounts Receivable Accounts Receivable Account Receivables 40