Yes, contributed capital is part of the total amount of equity that’s recorded by a company. The investors that participated in the capital raise paid $10.00 per common share. The paid-in capital formula is the…

Deferred tax arises due to temporary differences between accounting and tax base. So, an accountant needs to closely study the impact of movement on temporary differences before closing the business’s financial statement. It can not…

Hence, there is a need to make corrections in the accounting record and present true balances for the financial statement. This helps to enhance the element of reliability on the financial information. Accounting has evolved…

However, if it is likely that some of the accounts receivable will not be collected in full, the principle of conservatism requires that there be a credit balance in Allowance for Doubtful Accounts. Accounts receivable…

Retained earnings can be used to pay off existing outstanding debts or memorandum check loans that your business owes. Investors are primarily interested in earning maximum returns on their investments. When they know that management…

Additionally, convertible preferred stock offer some form of protection of the original investment, as holders of such stocks would get paid before common stockholders if a company went bankrupt. You cannot rely completely on the…

This documentation is crucial for audits and for providing a clear picture of the company’s asset utilization. The fact that an entity correctly plans the management of assets is essential to avoid fully depreciated assets…

Donating fully depreciated assets to charitable organizations can offer both social and financial benefits. This method not only supports community initiatives but can also provide valuable tax deductions. The fair market value of the donated…

Not every item on a product backlog is fully fleshed out and ready to work. Moreover, they understand the interdependencies or conflicts an item might create, etc. Sometimes a couple will place things on a…

This comprehensive guide delves into various aspects of managing small business finances adeptly, covering crucial topics from cash flow to business loans and beyond. Business credit cards typically offer APRs in the 14 percent to…