Categoría: Bookkeeping

This systematic allocation of prepaid expenses to the periods in which they relate ensures that financial statements accurately reflect the period’s expenses in relation to the revenues they help generate. Deferral accounting, in contrast to accrual accounting, focuses on the timing of recognition of certain transactions. This approach involves postponing the recognition of revenues and…

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General economic conditions could be impacting customer cash flows, requiring them to delay payments to their suppliers. This issue is a major one, since the problem arises entirely outside of the business, giving management no control over it. An increase in the average collection period can be indicative of any of the conditions noted below,…

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This $2,000 amount is a capital contribution since Tom has contributed capital in the form of cash and property to the business. Generally, when looking at equity you want to consider the value of something and how much you owe is on that value. Venture capital, on the other hand, most often involves taking only…

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Megan Mahncke for Mike Fordyce We’ve learned through the trends quiz that news—a combination of both serious and silly stories—is the right mix. Our homepage image is a source of inspiration for millions—and a great visual entrypoint to learn more about the world. We’re betting on the quiz format as the means of driving deeper…

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