This can be advantageous for businesses looking to defer income to a later tax year or accelerate expenses to reduce taxable income in the current year. For instance, a...
Or maybe you wrote a check for $1,000 but you only intended for it to be $10 and spelled out this amount. Chances are the check won’t go through...
This often involves analyzing loan documents for clauses such as balloon payments or interest rate adjustments that could affect repayment schedules. In summary, both metrics are vital when analyzing...
An allowance for doubtful accounts is also referred to as a contra asset, because it’s either valued at zero or it has a credit balance. In this context, the...
Yet, understanding how it fits into the larger financial puzzle is an entirely different concept. If you did take any time off without pay, you would need to adjust...
So August 1st comes around, and no cash pays the loan off, pays us all the money. Well, we’re going to receive $16,000 plus the interest, which we calculated...
An Operating Cycle (OC) refers to the days required for a business to receive inventory, sell the inventory, and collect cash from the sale of the inventory. The finished...
If investors will be receiving an additional $500 semiannually for 10 semiannual periods, they are willing to pay $4,100 more than the bond’s face amount of $100,000. The $4,100...
First, ratio analysis can be performed to track changes within a company’s financial health over time and predict future performance. Second, ratio analysis can be performed to compare results...
The balance sheet essentially is a picture of your startup’s financial position at a given moment in time. Assets are what the business owns, liabilities are what it owes and equity...
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