Payroll refers to the process of calculating and distributing wages to employees. The payroll process includes calculating hours worked, calculating taxes and other deductions, and issuing payments. Payroll is typically processed on a weekly or biweekly basis. How do you prepare payroll? In order to prepare payroll, you will need to gather a few things: … Read more
The amortization of intangibles is the gradual write-off of the cost of intangible assets over the estimated useful life of those assets. Intangible assets are long-term assets that lack physical substance but have economic value, such as trademarks, copyrights, and patents. Amortization is an accounting method used to spread the cost of intangible assets over … Read more
Discretionary cash flow is a measure of a company’s ability to generate cash flow from operations that is available for discretionary expenditures. This measure excludes cash flows associated with mandatory or contractual obligations, such as debt service. Discretionary cash flow is also known as free cash flow. How is SDE margin calculated? The SDE margin … Read more
Depreciation is an accounting method used to allocate the cost of a long-term asset over its useful life. Depreciation expense is used to better reflect the expense and wear and tear of a long-term asset as it is used. This method is used in order to match the expense of the asset to the revenue … Read more
A cash disbursement journal is a record of all cash payments made by a business. The journal includes the date of the payment, the name of the payee, the amount of the payment, and the purpose of the payment. The journal is used to track cash payments made for operating expenses, such as rent, utilities, … Read more
An accounting practice is a set of methods and procedures that are followed by an accountant or accounting firm when performing accounting tasks. This can include anything from keeping financial records and preparing financial statements, to providing tax advice and auditing financial statements. There are many different accounting practices that can be followed, and the … Read more
In accounting, Level 3 assets are those assets that are the most difficult to value. This is due to the fact that there is typically less market information available for these assets. As a result, Level 3 assets are typically valued using a model that relies heavily on assumptions. Some examples of Level 3 assets … Read more
The term “accounts uncollectible” refers to money that is owed to a company or individual that cannot be collected. This can happen for a variety of reasons, such as the debtor being unable to pay, or the debtor refusing to pay. When accounts are uncollectible, they are typically written off as bad debt. How do … Read more
A shortfall is the amount by which a company’s actual results fall short of its expected or planned results. Shortfalls can occur in various areas of a company’s operations, including sales, production, and financing. Shortfalls can be caused by a variety of factors, including economic conditions, competition, and poor planning. What is liquidity shortfall? A … Read more
A financial asset is any asset that derives its value from a contractual claim or agreement. Typically, financial assets are either debt instruments or equity instruments. Debt instruments are financial assets that represent a claim on the underlying assets or cash flows of a debtor. Common examples of debt instruments include bonds, loans, and mortgages. … Read more
