Adjusting Journal Entry Definition: Purpose, Types, and Example

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Applicable Federal Rate Overview, Purpose, List of Rates

Document the terms of the loan regardless of what interest rate you decide to charge a family member when you lend them money. It will allow you to prove whether the agreement was a loan or gift, and it can avoid confusion down the road. AFRs are typically much lower than the rates commercial lenders […]

Free Account Reconciliation Templates

The Reconciliation Report Template from Excel Demy for Excel is a handy resource for those who need to manage their bank accounts more effectively. This template allows you to compare and reconcile your bank statement with your own records. Bank reconciliation is essential for identifying accounting errors and detecting fraud & theft. Without bank statement […]

Gross Profit Formula + Calculator

A low gross margin ratio does not necessarily indicate a poorly performing company. It is important to compare ratios between companies in the same industry rather than comparing them across industries. The ratio indicates the percentage of each dollar of revenue that the company retains as gross profit. Before you sit down at the computer […]

Net Present Value NPV Definition, Examples, How to Do NPV Analysis

There are several actions that could trigger this block including submitting a certain word or phrase, a SQL command or malformed data. Cutting too many costs can also lead to undesirable outcomes, including losing skilled workers, shifting to inferior materials, or other losses in quality. To reduce the cost of production without sacrificing quality, the […]

Financial Covenants Overview, Importance, Examples

The borrower must follow the conditions of the agreement to ensure that the contract is valid. Mr. Arora is an experienced private equity investment professional, with experience working across multiple markets. Rohan has a focus in particular on consumer and business services transactions and operational growth. Rohan has also worked at Evercore, where he also […]

How do I get an Individual Taxpayer Identification Number ITIN?

Low Income Taxpayer Clinics (LITCs) are independent from the IRS and TAS. LITCs represent individuals whose income is below a certain level and who need to resolve tax problems with the IRS. LITCs can represent taxpayers in audits, appeals, and tax collection disputes before the IRS and in court. In addition, LITCs can provide information […]

Percentage of receivables method definition

This results in the allowance account being paired with the $1,000,000 of reported accounts receivable in the company’s year-end balance sheet, resulting in a net receivable balance of $975,000. $80,000 of this amount is in the 0-30 days time bucket, $15,000 is in the days time bucket, and the remaining $5,000 is in the days […]