Remember, short-sellers hope that the stock’s price will drop so they can buy back the borrowed shares at the lower price to earn a profit. Looking at the table, you can see that a price decrease or increase did not change the value of the credit balance. The credit balance in a short margin account […]
With greater insights into the financial aspects of different areas of their company, upper management can use cost center data to make better decisions. This includes a better understanding of what costs it may take to scale operations to target revenue levels, how a merger may impact company profits, or what targets are most reasonable […]
That is what the controller’s staff is trying so hard to do, and that is one reason why it takes as long as it does to close the books. Say that you worked in June on a new product and that the new product was introduced in July. The accountant determining the allocations has to […]
The discount on bonds payable amount shows the difference between the amount of cash received when issuing a bond and the value of the bond at maturity. The allowance method of accounting enables a company to determine the amount reasonable to be recorded in the contra account. When recording assets, the difference between the asset’s […]
If the filing software requires six steps to import a document, but the user can just save it to their desktop in one step, a lot of documents are going to end up on their desktop. So look for a system that can tap into the Save As function of any Windows program. You should […]
If a contra account is not used, it can be difficult to determine historical costs, which can make tax preparation more difficult and time-consuming. In order to balance the journal entry, a debit will be made to the bad debt expense for $4,000. Although the accounts receivable is not due in September, the company still […]