Fair Market Value FMV Definition, Examples, Calculations
Tax considerations are integral to the valuation process, influencing both the methods used and the final assessed value. Different tax jurisdictions have varying rules and regulations that can impact the valuation of assets. For instance, capital gains tax can affect the net proceeds from the sale of an asset, thereby influencing its market value. Shifts […]
Understanding and Analyzing Net Assets in Financial Statements
Unrestricted net assets are assets contributed by donors to a nonprofit entity that have no restrictions placed on their use. This is the most sought-after type of asset, since it can be used for administrative and fundraising activities. The typical nonprofit entity structures its fund raising activities to encourage donors to make unrestricted asset donations. […]
Present Value of an Annuity Explanation & How to Determine
Principal that is to be received within one year of the balance sheet date is reported as a current asset. Any portion of the notes receivable that is not due within one year of the balance sheet date is reported as a long term asset. For example, instead of paying $100 cash a person is […]
Cash vs Accrual Accounting: What’s Best for My Small Business?
Collaborating with an accountant can help ensure smooth and accurate reporting so your business remains compliant and your financial insights stay reliable. These requirements often force businesses to transition from cash to accrual accounting as they grow—a process that requires careful planning and execution. Accrual accounting should be used when seeking accurate performance measurement, managing […]
Cost price formula: What it is and how to calculate
This year, they released their newest pair at $250 and sold 250,000 units. Although the company dropped the cost of their product, this decrease incentivized more customers to make a purchase and led to a $17.5 million increase. By analyzing the cost per unit and gross margin, businesses can set the optimal selling price for […]
NRV: What Net Realizable Value Is and a Formula To Calculate It
Net Realizable Value, or NRV, is a measure used to estimate the value of an asset after deducting any costs related to its sale or use. It is commonly applied to inventory valuation and accounts receivable to ensure that assets are not overvalued in financial statements. Applying LCM affects a company’s financial statements by reducing […]
Joint Board examination program Internal Revenue Service
The Enrolled Agent (EA) exam, officially known as the Special Enrollment Examination (SEE), is segmented into three parts, each covering different realms of tax-related expertise. These parts include Individuals, Businesses, and Representation, Practices and Procedures. Candidates have the flexibility to take these sections in any order, but must pass all three to earn the esteemed […]
Delaware Top Workplaces 2024: A full list of the winners
This way, you can include standardized terms and agreed-upon legal language. But they have to stick to certain rules to avoid legal fights. One key rule is giving written notice to workers at least one pay period early. Whether you’re talking about full-time employees or part-time employees, many contracts should include a confidential binding arbitration […]
Accounting Cycle Analyzing, Journalizing, Posting, Summarizing
The following are examples of Ledger cards for the some of the accounts from the same company shown in T-accounts above (see how you get the same balance under either approach). You will notice that the transactions from January 3, January 9, January 12, and January 14 are listed already in this T-account. The next transaction […]