Creditors assess the financial stability of a business from its financial statements. This information is required to ensure that a borrower is capable of paying back the loan to its creditor. The company records that same amount again as a credit, or CR, in the revenue section. When it comes to accounting, creditors and debtors(…)
For practical reasons, it is normal to set a minimal cost below which the item is treated as an expense and charged to the profit and loss account in the year of purchase. For example, a stapler may have a life of more than one year but because of the minimal cost will be treated(…)
Section 501(c)(3) organizations that are required to file Form 990-T after August 17, 2006, must make Form 990-T available for public inspection under section 6104(d)(1)(A)(ii). Don’t use the definition of gross receipts described in Appendix C. Special Gross Receipts Tests for Determining Exempt Status of Section 501(c)(7) and 501(c)(15) Organizations to figure gross receipts for(…)
They also provide clients with monthly or annual accounting services, from generating income statements to financial consultations. Level Tax & Travel provides bookkeeping services to Tampa businesses. It prepares and reviews balance sheets, transaction reports, and income and cash flow statements to assess a company’s financial health. They help with our finances and collaborate perfectly(…)
While it’s true that a lower DII is typically better, there are plenty of situations in which a business may make a choice that increases its DII. For example, if the supply of your product has recently been unstable, you may choose to increase inventory of it to avoid restocking issues. If you sell tangible(…)
Both of these actions should be governed by a formal accounting policy that states the threshold at which prepaid expenses are to be charged to expense. Current assets are assets that a company plans to use or sell within a year; they are short-term assets. If any prepaid expense will not be used within a(…)
