Christine is a non-practicing attorney, freelance writer, and author. She has written legal and marketing content and communications for a wide Law Firm Bookkeeping and Accounting: A Completed Guide 2022 range of law firms for more than 15 years. She has also written extensively on parenting and current events for the website Scary Mommy. Managing […]
The Statement of Activities as well as the cash flow statements of the foreign entities are converted into the functional currency at the average exchange rate for the year published by the Swiss Administration for foreign currencies. The balance sheet items (with the exception of the Funds) are converted into the functional currency at the […]
This is achieved by boosting revenues while keeping expenses in check. A company’s property insurance bill for the next six months of insurance shows a cost of $6,000. Initially the cost of $6,000 is reported as the current asset Prepaid Insurance (or Prepaid Expense) since the cost has not been used up (has not expired). Calculating […]
For this reason, the selection of accurate cost drivers has a direct impact on the profitability and operations of an entity. Companies can improve their bottom line, efficiency, productivity, and competitive edge by identifying and understanding cost drivers. Therefore, organizations that strive for success should invest time and resources to determine their cost drivers and […]
A tangible asset could be anything from cash in your bank account, to your car, and the furniture in your home. If you can physically touch and measure it, it’s probably a tangible asset. With companies, on the other hand, assets represent items of value that can be used to promote or sustain growth in […]
They provide long-term financial benefits, have a useful life of more than one year, and are classified as property, plant, and equipment (PP&E) on the balance sheet. Fixed assets are assets that are purchased for long term use and are usually unlikely to be converted to cash. Examples of fixed assets are buildings, land, and […]
Otherwise, the agreed-upon price is not likely to differ from the property’s actual FMV. As a real estate appraiser, it is imperative to know whether a transaction is an arms-length sale, a non-arm’s length sale, or a different type of sale. Properties sold due to a job relocation, estate settlement, foreclosure, or divorce may sell […]
It occurs when a transaction is recorded using an incorrect accounting method, resulting in an inaccurate representation of the financial position and performance of the business. Accounting system is the key to understanding the financials status of any company. Maintaining accounts is also necessary for tax preparation and other government compliance compliances. Unfortunately, accounting errors […]