Insurance companies like MetLife, banks, and other financial institutions have large investment portfolios. In this respect, OCI can help an analyst get to a more accurate measure of the fair value of a company's investments. The relationship between... Read more
Until there is a clear understanding of the market and production, it would make sense put further purchases on hold. The key to managing inventory levels is to have visibility to inventory trends. Usage or sales trends are important indicators of po... Read more
Accounts payable may be converted into notes payable upon agreement between a company and its vendor. In many cases, a company may be restricted from paying dividends or performing stock buybacks until the promissory note has been repaid. When a comp... Read more
If the company wrote off any uncollectible accounts during 2009, it would debit Allowance for Uncollectible Accounts and cause a debit balance in that account. At the end of 2009, the company would debit Uncollectible Accounts Expense and credit Allo... Read more
The normal balance for each account type is noted in the following table. For example, if a company borrows cash from its local bank, the company will debit its asset account Cash since the company's cash balance is increasing. The same entry will in... Read more
These statements are essential because after starting your nonprofit, you will need some of the information for ongoing financial compliance. Some states require these statements to be attached to Form 990, so be sure to check your local requirements... Read more
Rely on BC Templates 2021 and win approvals, funding, and top-level support. For those who need quality case results quickly—the complete concise guide to building the winning business case. For twenty years, the proven standard in business, governme... Read more
NSF also describes the fee charged when a check is presented but cannot be covered by the balance in the account. You may see a “non-sufficient funds” or “insufficient funds” notice on a bank statement or at an ATM terminal wh... Read more
The FASB’s board members on Wednesday proposed allowing private franchisers to delay by one year the effective date of a standard that unifies how companies account for revenue from sales and services. Those effective dates reflect the FASB&rsq... Read more
Some people also choice to include the current portion of long-term debt in the liabilities section. This makes sense because although it stems from a long-term obligation, the current portion will have to be repaid in the current year. Thus, it&rsqu... Read more
