Accounting Tools

OCTOBER 25, 2023

This is done to keep funds from being used for other purposes, such as paying dividends or buying back shares. A reserve is something of an anachronism, because there are no legal restrictions on the use of funds that have been designated as being reserved. The board of directors is authorized to create a reserve.

Accounting 75

Accounting Accounting Financial Statements Bookkeeping 75

Accounting Tools

JANUARY 14, 2024

What is a General Fund? A general fund is the primary fund used by a government entity. This fund is used to record all resource inflows and outflows that are not associated with special-purpose funds.

Tax 40

Tax Auditing Accounting Accounting 40

Accounting Tools

AUGUST 8, 2023

What is a Board-Designated Restriction? A board-designated restriction is a restriction on the use of an asset that is imposed by the board of directors. Related Articles Restricted Account Restricted Cash Restricted Fund Restricted Retained Earnings

Accounting 40

Accounting Accounting 40

Accounting Tools

JUNE 6, 2023

The intent of retained earnings appropriation is to not make these funds available for payment to shareholders. Related Articles Accumulated Retained Earnings Negative Retained Earnings Restricted Retained Earnings The Normal Balance of Retained Earnings The Retained Earnings Formula Unappropriated Retained Earnings

Financial Statements 74

Financial Statements Accounting Accounting 74

Accounting Tools

OCTOBER 21, 2023

There are many types of pledges, such as ones that are to be fulfilled all at one time, in increments, and with or without restrictions. Unconditional Pledge When a donor commits to a pledge without reservation, the nonprofit receiving the funds records the pledge as revenue and an account receivable. The variations are noted below.

Accounting 76

Accounting Accounting Accounts Receivable Accounts Receivable 76

Accounting Tools

APRIL 9, 2024

With such a singular focus, the parties responsible for a revenue center can direct their energies entirely towards driving up sales, without needing to be overly involved in monitoring expenses or invested funds. Consequently, the use of revenue centers should be restricted.

Accounting 40

Accounting Accounting 40

Accounting Tools

SEPTEMBER 25, 2023

Related Courses Auditing State and Local Governments Governmental Accounting The Green Book Explained The Yellow Book Explained What is an Enterprise Fund? An enterprise fund is a self-supporting government fund that sells goods and services to the public for a fee.

Auditing 40

Auditing Accounting Accounting 40

Accounting Tools

OCTOBER 10, 2023

Related Courses Auditing State and Local Governments Governmental Accounting The Green Book Explained The Yellow Book Explained What is a Special Revenue Fund? A special revenue fund is a fund used within a government entity to record the proceeds from certain revenue sources for which fund usage is restricted.

Auditing 40

Auditing Accounting Accounting 40

Accounting Tools

SEPTEMBER 25, 2023

Related Courses Auditing Nonprofit Entities Nonprofit Accounting What is an Endowment Fund? An endowment fund is a sum of money that has been contributed by donors, and which is used for the upkeep or operations of an organization. Endowment funds are commonly used by nonprofit and educational institutions.

Auditing 40

Auditing Tax Accounting Accounting 40

Accounting Tools

DECEMBER 23, 2023

An appropriation is a directive to spend funds in a particular way and within a restricted period of time. Thus, an appropriation controls the expenditure of funds. For example, an appropriation may be made to set aside funds for a highway improvement project or to construct a government building.

Auditing 40

Auditing Accounting Accounting 40

Accounting Tools

FEBRUARY 1, 2024

A more restrictive CD may require an early-withdrawal penalty. Related AccountingTools Courses Corporate Cash Management Corporate Finance Investing Guidebook Related Articles Demand Deposit Exchange-Traded Fund Money Market Fund A CD is essentially a promissory note issued by a bank.

Deposits 40

Deposits Corporate Finance 40

Accounting Tools

OCTOBER 19, 2023

A blanket appropriation is a set-aside of funds for which there is no specification for how the funds are to be used. A manager receiving a blanket appropriation can spend the funds at his or her own discretion. Related Articles Fund Accounting Governmental Accounting

Auditing 40

Auditing Accounting Accounting 40

Accounting Tools

SEPTEMBER 4, 2023

There is not usually a restriction on the amount of cash held in a checking account, nor on how long it must be held. However, they have more restrictions that a standard checking account (such as a maximum number of check payments to be issued each month), and may require a minimum balance. Zero balance account.

Deposits 40

Deposits Accounting Accounting Tax 40

Accounting Tools

MARCH 29, 2024

The line item contains the sum total of the changes that a company experienced during a designated reporting period that were caused by transactions with owners or lenders to either provide long-term funds to the business or to return those funds to the owners or lenders.

Financial Statements 40

Financial Statements 40

Accounting Tools

APRIL 14, 2024

This is because funds are directed at what are considered to be the most important goals, while funding is restricted elsewhere. Related AccountingTools Courses Accounting Controls Guidebook Budgeting Capital Budgeting Related Articles Budgeting Controls (podcast) Control Cycle Performance measurement.

Budgeting 40

Budgeting Financial Statements Accounting Accounting 40

Accounting Tools

AUGUST 7, 2023

Types of Cash and Cash Equivalents Examples of cash are as follows: Coins Currency Cash in checking accounts Cash in savings accounts Bank drafts Money orders Petty cash Examples of cash equivalents are as follows: Commercial paper Marketable securities Money market funds Short-term government bonds Treasury bills Related Articles Restricted Cash The (..)

Petty cash 75

Petty cash Billing Auditing Accounting 75

Accounting Tools

SEPTEMBER 1, 2023

An encumbrance is a restriction placed on the use of funds. An encumbrance can also restrict the uses to which property can be put, such as zoning laws that limit the types of construction on a plot of land. Related Articles Reserve for Encumbrances Unencumbered Balance

Auditing 40

Auditing Tax Accounting Accounting 40

Accounting Tools

NOVEMBER 3, 2023

Capital rationing is the decision process used to select capital projects when there is a limited amount of funding available. Rationing may also be imposed when there is enough funding, but management is restricting it from certain parts of the business in order to emphasize investments in other areas.

Budgeting 40

Budgeting 40

Accounting Tools

AUGUST 5, 2023

Related Courses Auditing State and Local Governments Governmental Accounting The Green Book Explained The Yellow Book Explained What is Fund Accounting? Fund accounting is a system of accounting used by non-profit entities to track the amount of cash assigned to different purposes and the usage of that cash. Debt service funds.

Accounting 74

Accounting Accounting Budgeting Auditing 74

Accounting Tools

SEPTEMBER 1, 2023

An earned surplus is the amount of funds generated by the operations of a business and which were retained within the organization, rather than being paid out to investors. Related Articles Accumulated Retained Earnings Restricted Retained Earnings The Normal Balance of Retained Earnings The Retained Earnings Formula

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40

Accounting Tools

SEPTEMBER 29, 2023

Example of a Conditional Promise to Give A donor promises a $1,000,000 gift to the building fund of the local ballet company, which is dependent upon the ballet company first raising $250,000 from other sources. Related Articles Donor-Imposed Condition Donor-Imposed Restriction Pass-Through Contribution Unrestricted Contribution

Auditing 40

Auditing Accounting Accounting 40

Accounting Tools

NOVEMBER 5, 2023

It is prudent to maintain a significant reserve of funds against the day when there is a decline in profitability. A rapidly-growing business consumes an inordinate amount of cash , because additional accounts receivable and inventory must be funded to support the growth. Self insurance. Debt paydown. Appropriation.

Accounts Receivable 40

Accounts Receivable Accounts Receivable Account Receivables Tax 40

Accounting Tools

SEPTEMBER 7, 2023

Many notes payable require formal approval by a company’s board of directors before a lender will issue funds. Related Articles Accounting for a Non Interest Bearing Note Accounting for Debt Issuance Costs How to Record a Loan Payable that Includes Interest and Principal The Difference Between Recourse and Non-Recourse Debt

Accruals 75

Accruals Accounts Payable Accounts Payable Auditing 75

Accounting Tools

SEPTEMBER 7, 2023

There may be pressure from investors to issue a dividend if a company has built up a large balance in its retained earnings account over time, though this argument is not necessarily valid if the company still has profitable opportunities in which it can invest the excess funds (which is frequently the case in an expanding market).

Financial Statements 75

Financial Statements Accounting Accounting 75

Accounting Tools

MARCH 5, 2024

Ultimately, the result should be more collected funds in relation to the collection effort expended. Restrict the Granting of Credit Debt collection begins with a decision about how much easy credit a company wants to grant its customers. A suggested set of debt collection strategies to consider are noted below.

Collections 40

Collections Invoicing Accounts Receivable Accounts Receivable 40

Accounting Tools

OCTOBER 19, 2023

The more restrictive version of the formula is: Shareholders' equity ÷ Total tangible assets Example of the Proprietary Ratio ABC Company has shareholders' equity of $2,000,000 and total assets of $5,000,000. Related Articles Asset to Equity Ratio Capital Adequacy Ratio Degree of Total Leverage Equity Multiplier Gearing Ratio

Financial Statements 40

Financial Statements 40

Accounting Tools

APRIL 11, 2023

One is the restrictive covenant, in which the issuer is forbidden from engaging in certain activities, such as issuing dividends to its shareholders , or taking on additional debt. When a restrictive covenant is breached by the bond issuer, it is considered a technical default.

Corporate Finance 40

Corporate Finance Financial Statements Auditing Accounting 40

Accounting Tools

JUNE 10, 2023

A growing company normally avoids dividend payments, so that it can use its retained earnings to fund additional growth of the business in such areas as working capital , capital expenditures , acquisitions, research and development, and marketing. A large retained earnings balance implies a financially healthy organization.

Financial Statements 75

Financial Statements Accounting Accounting 75

Counto

FEBRUARY 7, 2024

Determining the Quota The Ministry of Manpower (MOM) calculates the foreign worker quota based on information from the company’s Central Provident Fund (CPF) account. Employment Pass (EP) Holders Unlike Work Permit and S Pass holders, there are no quota restrictions for EP holders in Singapore.

Computation 52

Computation Financial Services Tax Accounting 52

Accounting Tools

DECEMBER 10, 2023

The ratio is used to evaluate the ability of a company to efficiently issue credit to its customers and collect funds from them in a timely manner. It is also useful for monitoring the overall level of working capital investment, and so is commonly presented to the treasurer and chief financial officer, who use it to plan funding levels.

Accounts Receivable 40

Accounts Receivable Accounts Receivable Account Receivables Accounting 40

Accounting Tools

OCTOBER 25, 2023

Economists typically review the difference between the interest rate on the 10-year Treasury note and the Fed funds rate, which is known as the interest rate spread. For example, if the federal funds rate is 1.50 Related Articles Yield to Maturity Thus, it can be used to predict changes in the economy.

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40

Accounting Tools

SEPTEMBER 21, 2023

Step 2: Note Available Funding Determine the most likely amount of funding that will be available during the budget period, which may limit growth plans. Add a commentary to the packet, stating step costing information, bottlenecks , and expected funding limitations for the upcoming budget year. Adjust the budgets as necessary.

Budgeting 40

Budgeting Payroll Data Entry Financial Software 40

Accounting Tools

OCTOBER 8, 2023

This information is needed to determine whether an organization needs additional long-term funding for its operations, or whether it should plan to shift excess cash into longer-term investment vehicles. The first part of working capital analysis is to examine the timelines within which current liabilities are due for payment.

Accounts Receivable 40

Accounts Receivable Accounts Receivable Account Receivables Accounts Payable 40

Accounting Tools

JUNE 12, 2023

Similarly, lenders typically require an audit of the financial statements of any entity to which they lend funds. Review bank reconciliations , count on-hand cash, confirm restrictions on bank balances, issue bank confirmations. Conduct a ratio comparison with historical, forecasted, and industry results to spot anomalies.

Financial Statements 76

Financial Statements Auditing General Ledger Bank Reconciliation 76

Counto

MAY 4, 2024

CPF Registration: Register for Central Provident Fund (CPF) contributions for local employees, which is a mandatory social security savings plan for working Singaporeans and permanent residents. Adhere to restrictions on sale of certain food items like raw meat. Read our CPF guide here. Prohibit re-freezing of thawed frozen foods.

Tax 52

Tax Accounting Accounting 52

Accounting Tools

JUNE 19, 2023

There must be a good reason why the owners of a business want to sell it – and they may be excellent ones, such as raising funds for an estate tax payment, a divorce, or retirement. In particular, look for restrictions on the ability of the company to outsource work or relocate facilities.

Financial Statements 73

Financial Statements Auditing Tax Accounts Payable 73

Accounting Tools

OCTOBER 3, 2023

This is a particular issue for long-term projects, where the person issuing an invoice must be aware of the remaining funding on the project, as well as any other restrictions placed on billing by customers. Related Articles Avoiding Missed Billings Billing Best Practices (podcast) Billing Procedure

Billing 40

Billing Purchase Order Invoicing Computation 40