Accounting

Tree NodeSelect a node from the consolidation tree by which you want to further filter trial balance results. Get All Lowest Level Nodes Displays the information for the children at the lowest level of the tree for the selected node. View activity for the specified period only, or view cumulative activity from the beginning of the fiscal year through the specified period, or view a mix of cumulative and period activity, based on account type. Learn accounting fundamentals and how to read financ […]

Negative assurance relates to limited assurance engagements. Due to the lower assurance required, auditors use a negatively worded conclusion. The term audit refers to examination or investigation. An audit is a process through which independent auditors assess a subject matter.

What is example of assurance?

The definition of assurance is an affirmation and commitment. An example of an assurance is a construction firm stating that a job will be finished by the original projected date. A st […]

This is usually 20% of the leftover invoice, net of fees. Should there be any outstanding invoices that a customer has not paid back within the agreed upon time period, the factoring lender may require the company to buyback that invoice AND still charge a fee. This type of situation is called “with recourse” because the lender can force the company to “buy back” delinquent invoices. Invoice Factoring (sometimes called “accounts receivable financing”) is an a […]

However, in most examples, organizations experience uneven cash flows in a multiple-year ownership period. For example, an uneven cash flow distribution might be a return of $10,000 in year one, $20,000 in years two and three, $15,000 in years four and five, and $20,000 in year six and beyond. The initial investment cost of $150,000 is divided by the annual cash flow of $20,000 to compute an expected payback period of 7.5 years. Depending on the company’s payback period requirements for t […]

Revenues should be recognized in the accounting period in which they become available and measurable. Expenditures should be recognized in the accounting period in which the fund liability is incurred, if measurable, except for unmatured interest on general long-term liabilities, which should be recognized when due. A clear distinction should be made between fund long-term liabilities and general long-term liabilities. Long-term liabilities directly related to and expected to be paid from propr […]

This means the company is only out of pocket cash for 15 days before receiving full payment. Because businesses are so complex with many moving parts, it is virtually impossible to have all of your transactions occur on the same day or period. This is where the working capital cycle formula comes into play.
A positive working capital cycle balances incoming and outgoing payments to minimize net working capital and maximize free cash flow. For example, a company that pays its suppliers in 30 day […]