Accounting

A premium paid on a bond must be amortized over the life of the bond, resulting in lower interest income. A discount on a bond must also be amortized over the life of the bond, resulting in higher interest income. Amortization simply means spreading the cost of the premium or discount over the remaining life of the bond. Accounting for investments can be complicated because investments can be accounted for in several ways.
Bonds and other debt vehicles—such as certificates of deposit —are the m […]

Operating expenses are the amount of money a company spends on business operations. At a minimum, most businesses need office equipment, signage, and security systems. To determine your costs, list all the equipment you must have to efficiently operate your business.

Examples of overhead expenses include things like utilities, rent, and insurance. As you can see from the formula above, operating expenses are subtracted from a business’s gross profit, and the result is the company’s […]

For the company, you calculate the value of common stock by multiplying the par value by the number of outstanding shares. For example, one million shares valued at $1 each would have a balance sheet entry of $1 million. Equity is used as capital raised by a company, which is then used to purchase assets, invest in projects, and fund operations.

Distributions signify a reduction of company assets and company equity. The owner’s capital account is used by partnerships and sole proprietors […]

This means that no constant payment will be enough to cover the worst case cost of an operation, in and of itself. With proper selection of payment, however, this is no longer a difficulty; the expensive operations will only occur when there is sufficient payment in the pool to cover their costs. The payment is intended to cover the cost of elementary operations needed to complete this particular operation, with some of the payment left over, placed in a pool to be used later. Points paid to se […]

The accounting equation defines a company’s total assets as the sum of its liabilities and shareholders’ equity. However, hedging application needs to be done tactically and consistently in line with a defined treasury policy. Buying insurance when the house is already on fire, will not be the most cost effective strategy. Some reference also needs to be taken to the predetermined purchasing power parity of a currency and perhaps when there is 30% to 40% undervaluation of your group […]

Once they’ve cleared on your bank’s website, they’ll look normal in Mint. It can take up to 4 hours for changes to take effect if you’ve deleted your bank from Mint or if you’ve removed Mint access from your Read more… You can connect your Wealthsimple Invest account to Mint to get a fuller picture of your finances. You can download a list of your transactions into an Excel spreadsheet through Mint.com. Sign in to Mint.com and select Transactions near the Rea […]