If you do not qualify for the abatement, you will get lower penalties for late payment than for late filing. But don’t forget that interest begins to accrue the day after the due date and compounds daily, so it may not be worth it to follow tha... Read more
Other valuation or costing methods like replacement cost or current cost fluctuate with the market and economy. If these methods were used, the company would report the same piece of property at different values every year based on the market. A hist... Read more
But when you do find yourself acquiring another business, you’ll want to make sure you follow U.S. If you do carry goodwill on your balance sheet, you’ll also want to make sure you conduct impairment tests each year and enter adjusting jo... Read more
However, book and tax amounts may differ under some systems. Where the market value of goods has declined for whatever reasons, the business may choose to value its inventory at the lower of cost or market value, also known as net realizable value. T... Read more
Accounting should be conducted based on the assumption that a company will continue to operate indefinitely. If an accountant is required to make any assumptions, those assumptions should be based on historical precedents set by the business. Account... Read more
For instance, if your business borrows $50,000 from the bank to purchase additional inventory for resale, that is using financial leverage. Leverage is a financial tactic to multiply gains and losses, accomplished through borrowing capital on existin... Read more
Getting your name out there can score you some self-employment tax deductions. You can offer your employees up to $5,000 in dependent-care benefits. If your spouse is your employee, that $5,000 can be used for child care for your own children. These ... Read more
A decrease in deferred revenue may indicate that a company does not have as much work as it did in past years. Deferred revenue is equal to the value of invoices to date over the recognizable revenue to date calculated by customer contract and then a... Read more
However, since the business is yet to provide actual goods or services, it considers unearned revenue as liabilities, as explained further below. This is money paid to a business in advance, before it actually provides goods or services to a client. ... Read more
The responsibilities of the board of directors can vary rather significantly from company to company. Some boards do little whereas others are heavily involved in strategy and policy making. Some of these terms have been examined previously, others h... Read more
