While simple interest is relatively straightforward to compute, it is not the type of interest that is typically used in most actual loans. A woman has deposited $6,000 in a saving bank which pays here interest at a rate of 9% per year. At the end of sixth year, the amount of $13,000 (i.e., $10,000…
Because a company’s debt can affect both share price and earnings, leverage can skew P/E ratios as well. For example, suppose two similar companies differ in the debt they hold. The firm with more debt will likely have a lower P/E value than the one with less debt. However, if the business is solid, the…
Report the total section 743(b) adjustment net of any cost recovery as a single amount for all asset categories for each partner. In addition, attach a statement to the Schedule K-1 for this code showing the amount of each remaining section 743(b) basis, net of cost recovery by asset category. A reasonable grouping by asset…
The benefit for an organization to spend time calculating EOQ is to minimize its inventory costs and, in turn, make strides toward being as efficient as possible. The goal of the EOQ formula is to identify the optimal number of product units to order so that a company can minimize its costs related to buying,…
By doing that, it lets investors steer clear of overexposure to speculative ventures so they don’t lose money that no longer exists during downturns. They choose to prioritize risk adjusted returns so that they don’t lose their capital but instead are positioned to benefit from market recoveries. The margin of safety is an essential tool…
Just as assets are categorized as current or noncurrent, liabilities are categorized as current liabilities or noncurrent liabilities. Here’s everything you need to know about understanding a balance sheet, including what it is, the information it contains, why it’s so important, and the underlying mechanics of how it works. We accept payments via credit card,…
Expert Assisted is a monthly subscription service that requires a QBO subscription and provides expert help to answer your questions related to the books that you maintain full ownership and control. An expert can guide you through QBO setup and answer questions based on the information you provide; some bookkeeping services may not be included…
We also looked at real customer experiences http://agrolib.ru/news/item/f00/s06/n0000608/index.shtml to determine if their expectations were met based on what each company promised. After assigning a weighted score to each category, we formulated rankings for each company. Live Expert Full-Service Bookkeeping doesn’t include sending invoices, paying bills, or management of inventory, accounts receivable, or accounts payable. The…
Construction companies can use cash flow statements to track their cash inflows and outflows and identify any cash shortfalls. They can also use budgeting and forecasting techniques to predict future cash needs and plan accordingly. You can use Botkeeper to connect your books to your bank account and simplify reporting. It can also organize and…
It’s not often that people find themselves in a situation where they have more money than they thought they would. What’s more, many people don’t even know which papers to give to the IRS. What information is relevant and vital, and which is inconsequential? Instead of racking their brains, people with the dreaded IRS notice…