These revenue expenditures are important for the smooth functioning of the business. It must be noted that the benefit derived from such expenses do not extend beyond one accounting period, i.e. the company can enjoy the benefits of such expenses for that particular period in which it is incurred. Revenue expenditures are usually less expensive…
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Likewise, the inventory balances will be up to date and the company can review it anytime without making physical inventory count. Of cause, the company still performs the physical count of inventory sometimes for the control purpose. Inventory accounting journal entries are records in your accounting ledger that document your inventory transactions. There are different…
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Allow homeowners to view balances, pay fees and request maintenance in a secure portal or mobile app. Your property management software should meet five requirements before you decide to stick with it for the long haul. Save time and money with all-in-one marketing, leasing, management and accounting software that makes work a breeze. Start by…
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GST returns are due to be submitted by the 28th day of the month following the end of the reporting period and the payment deadline is the same as the return filing deadline. If you’re a non-resident business that sells low value goods such as clothing, cosmetics and electronic items to consumers in New Zealand,…
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The current ratio provides a snapshot of liquidity at a specific point in time. It does not account for fluctuations in current assets and liabilities that may occur throughout the year. Therefore, a single current ratio might not fully capture a company’s liquidity position. If a business finds its current ratio is below 1, indicating…
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Permanent employees double this compensation by 52, the year’s number of weeks. Unearned income, also known as passive income, is money you receive without actively earning it. For example, receiving gifts and contributions, such as inheritances can be a source of unearned income. If you have multiple sources of income, you will need to add…
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A financial professional will offer guidance based on the information provided and offer a no-obligation call to better understand your situation. Finance Strategists has an advertising relationship with some of the companies included on this website. We may earn a commission when you click on a link or make a purchase through the links on…
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The full disclosure principle is a principle you may have heard in the news in regard to businesses releasing information. Under this basic accounting principle, a business is required to disclose all information that relates to the function of its financial statements in notes for the reader that accompany the statements. Generally, these notes first…
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In other words, the hedge is 100% inversely correlated to the vulnerable asset. This is more an ideal than a reality on the ground, and even the hypothetical perfect hedge is not without cost. Basis risk refers to the risk that an asset and a hedge will not move in opposite directions as expected. The best…
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This efficiency allows for more immediate reinvestment into the business, fostering growth and stability. Delinquent Days Sales Outstanding (DDSO) is a good alternative for credit collection assessment or for use alongside DSO. Like any metric measuring a company’s performance, DSO should not be considered alone, but rather should be used with other metrics. When the…
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