Accounting Tools

APRIL 17, 2024

The cost of growing crops should be reported at the lower of cost or market. Related AccountingTools Courses Accounting for Vineyards and Wineries Agricultural Accounting Example of the Accounting for Raised Crops A farm raises wheat as its principal crop. These costs should be accrued and allocated to the harvested crop.

Accounting 40

Accounting Accounting 40

Accounting Tools

JULY 16, 2023

Related Courses Fair Value Accounting What is Market Value? Market value is the price at which a product or service could be sold in a competitive, open market. Market value is more difficult to determine when the preceding factors are not present.

Accounting 40

Accounting Accounting 40

Accounting Tools

APRIL 7, 2024

A very high debt service coverage ratio gives a business a substantial cushion to pay for unexpected or unplanned expenditures , or if market conditions result in a significant decline in future income.

Financial Statements 40

Financial Statements Tax 40

Accounting Tools

JUNE 17, 2023

Fair value is the price that two parties are willing to pay for an asset or liability , preferably in an active market. A less accurate measure of fair value is when there is an active market for a similar item, while the least accurate measurement method is to use the discounted cash flows associated with the future performance of an item.

Accounting 40

Accounting Accounting 40

Accounting Tools

JANUARY 2, 2024

When a firm uses a large amount of debt , it incurs a significant interest expense and obligation to repay principal that makes it more likely to have financial difficulties if its cash flows decline. Liquidity Risk Liquidity risk is the possibility that losses will be incurred when market conditions are highly volatile.

Corporate Finance 40

Corporate Finance Tax 40

Accounting Tools

SEPTEMBER 30, 2023

A bond premium occurs when investors are willing to pay more than the face value of a bond, because its stated interest rate is higher than the prevailing market interest rate. Related Articles Calculating the Weighted Average Interest Rate How to Calculate the Implied Interest Rate Nominal Interest Rate Real Interest Rate

Corporate Finance 40

Corporate Finance Computation Accounting Accounting 40

Accounting Tools

DECEMBER 20, 2023

Default risk is the possibility that the issuer of a bond will not be able to repay the underlying principal or make scheduled interest payments. When the default risk on an existing bond increases, the market price of the bond will likely decline as investors sell off their holdings. What is Default Risk?

Corporate Finance 40

Corporate Finance Collections 40

Accounting Tools

AUGUST 24, 2023

Related Articles Marketable Securities Short-Term Investments Temporary Investments Trading Securities The explanations and rules noted here are described within the International Financial Reporting Standards framework.

Financial Reporting 40

Financial Reporting Collections Accounting Accounting 40

Accounting Tools

NOVEMBER 1, 2023

If the financial circumstances of these borrowers declines, the following issues may arise that require accounting treatment: Loan Impairment A loan is considered to be impaired when it is probable that not all of the related principal and interest payments will be collected. Related Articles Troubled Debt Restructuring Accounting

Accounting 40

Accounting Accounting Collections 40

Accounting Tools

MAY 4, 2024

The quick ratio formula is as follows: (Cash + Marketable securities + Accounts receivable) ÷ Current liabilities = Quick ratio The most conservative liquidity ratio is the cash ratio , which compares only a firm’s cash and cash equivalents to its current liabilities. Net annual credit sales divided by average receivables. Inventory turnover.

Accounting 40

Accounting Accounting Financial Statements Accounts Receivable 40

Accounting Tools

APRIL 11, 2023

When a bond’s rating declines, there will likely be a sell-off on the secondary market , resulting in a decline in the bond’s price. In this case, bond holders can demand to be paid all principal and accrued interest at once, or following a short grace period.

Corporate Finance 40

Corporate Finance Financial Statements Auditing Accounting 40

Accounting Tools

JULY 11, 2023

Compare the present value of the lease payments and the present value of market rental payments. Related Articles How to Account for Leasehold Improvements Lease Accounting This can be judged from either of the following comparisons: Compare the difference between the sale price of the asset and its fair value.

Accounting 40

Accounting Accounting 40

Jetpack Workflow

DECEMBER 5, 2023

In this article, we share their secrets to growth, which you can implement in your firm. Amplify Your Sales & Marketing Specialize in Niche Markets Directing your accounting services to the needs of a niche market , like tourism and hospitality, allows you to build your expertise and become a leader in that specific industry.

Accounting 52

Accounting Accounting Data Entry Invoicing 52

Jetpack Workflow

JANUARY 23, 2024

Rather than investing in digital or traditional marketing strategies , Bactrian LLC focuses on going above and beyond for existing clients, and that compels clients to refer the firm to others and grow the business organically. Gain Trust with Content Marketing Simply posting general content isn’t enough to grow your new firm.

Tax 59

Tax Accounting Accounting CPA 59

Nanonets

MAY 8, 2023

Thus, accounts receivable serves as both market research in the perspective that it can help businesses understand what is selling and when to order more products and a source of working capital. They are typically broken down into three main parts: The Principal: This is the original amount owed by the customer.

Accounts Receivable 52

Accounts Receivable Accounts Receivable Account Receivables AR 52

Accounting Tools

AUGUST 31, 2023

Cash Flow from Financing Activities Cash flow from financing activities are caused by the interest and principal payments made by the entity, or the repurchase of company stock, or the issuance of dividends. Cash outflows can vary substantially when business operations are highly seasonal.

Accruals 75

Accruals Financial Statements Accounts Payable Accounts Payable 75

Jetpack Workflow

MARCH 23, 2023

This article will share why having this checklist is important, the key items to include, and a free template to get you started. You must also record the principal repayments promptly to ensure your business reports the proper balance it owes. A checklist is essential during the monthly closing process.

Reconciling 52

Reconciling AR AP Payroll 52