OverviewThe going concern principle plays one of the key roles in accounting and auditing. The term assumption is closely related to this concept. Its idea is that when forming the accounting and reporting methodology, we do not take into account the... Read more
You won't get charged for questions. So 1800 accountants filed the client as an S corp- and an S corp doesn't exist. Now that I brought my first rental property I was looking to see if they are equipped to maximize returns for real estste investors.... Read more
Balance sheet substantiation is an important process that is typically carried out on a monthly, quarterly and year-end basis. The results help to drive the regulatory balance sheet reporting obligations of the organization. To maximize liquidity and... Read more
Vertical analysis states financial statements in a comparable common-size format (i.e., percentage form). One of the advantages of common-size analysis is that it can be used for inter-company comparison of enterprises with different sizes because al... Read more
The equity accounts include all the claims the owners have against the company. The business owner has an investment, and it may be the only investment in the firm. If the firm has taken on other investors, that is reflected here. The chart of accoun... Read more
A capital requirement is a fraction of assets that must be held as a certain kind of liability or equity . Before the 1980s, regulators typically imposed judgmental capital requirements, a bank was supposed to be "adequately capitalized," but these w... Read more
Why You Need Nonprofit AccountingInstead of the goal of making a profit, non-profits strive to achieve social, charitable, educational, and other goals, act to meet the needs of citizens, protect the rights and legitimate interests of citizens and or... Read more
Importance of business valuationValuation is the process of determining how much an asset is worth. The same methods used to value assets are used to value companies. Business valuation is necessary for several reasons. These include the following:Un... Read more
Hence, Companies use this tool to ensure that all debit balances are equal to the total of all credit balances after an accountant passes closing entries. Temporary accounts are accounts that are closed at the end of each accounting period, and inclu... Read more
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