The benefit of using depreciation with a tax shield is that you can subtract any depreciation expenses from taxable income. These intangible assets can affect your rate of tax and tax expense. There are many examples of a tax shield, and it often depends on the tax rate of the corporation or individual as well […]
Footnotes are required only to the point “beyond the legal minimum” to protect the company from liability. How footnotes are conveyed and which information is included is up to the discretion of management. If entered by the court, the CFPB’s order bans Navient from most federal student loan activities. Navient would no longer be able […]
He has worked as an accountant and consultant for more than 25 years and has built financial models for all types of industries. He has been the CFO or controller of both small and medium sized companies and has run small businesses of his own. He has been a manager and an auditor with Deloitte, […]
Typically, a business will have a separate accounts payable account for their trade payables. Trade payables are liabilities that are recorded as accounts payables, but not all accounts payables are trade payables. As such, it is important for businesses to keep track of their trade payable obligations, as failure could result in late payment fees […]
For example, if your company employs the consulting services of an individual payable a month after completion, the invoice sent over by the contractor comes under accounts payable. Trade payables is credited, which, since it’s a liability, increases the outstanding balance. If you buy any costs of fulfillment on credit, you need less capital on […]
Comparability means that a company’s financial statements can be compared to those of another company in the same industry. Different ratios, such as earnings per share (EPS) or current ratio, are also compared for different accounting periods. An absolute comparison involves comparing the amount of the retirement savings calculator same line of the item to […]
Comparability means that a company’s financial statements can be compared to those of another company in the same industry. Different ratios, such as earnings per share (EPS) or current ratio, are also compared for different accounting periods. An absolute comparison involves comparing the amount of the retirement savings calculator same line of the item to […]
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The Retained Earnings account can be negative due to large, cumulative net losses. The RE balance may not always be a positive number, as it may reflect that the current period’s net loss is greater than that of the RE beginning balance. Alternatively, a large distribution of dividends that exceed the retained earnings balance can […]