Accounting

Since then, the organization has eliminated anonymous donations above $100, listed all donors on its public website and upgraded its customer management tools to collect and track all disclosure information, Bunim said. I’m aware of a company not requiring ad disclosures be placed on social media posts they are asking people to make for them to gain exposure for their product. Some are just asks to post, others are paid with money or free product.

FTC cases have challenged supers that fl […]

Yes, you can include notes payable when preparing financial projections for your business. This step includes reducing projections by the amount of payments made on principal, while also accounting for any new notes payable that may be added to the balance.

Notes payable is a liability account maintained in a company’s general ledger that tracks their promises to pay specific amounts of money within a predetermined period. Effective accounts payable management is a crucial part of managi […]

This particular principle requires companies to exercise caution when recording financial activity, opting for solutions that show the least favorable outcome. This is used as guidance when there’s a need for estimation in accounting, preventing inflated figures or bias. As mentioned before, conservatism allows the shareholder to get a clear and transparent picture of the organization.

In the same vein, accountants are advised to ignore any possibility of market reward until it occurs. I […]

If a taxpayer is using one of the safe harbor nonaccrual-experience methods described in paragraphs through of this section, its method is deemed to clearly reflect its experience and is not subject to the self-testing requirements in paragraphs and of this section. The taxpayer must begin to create its moving average in the second tax year by tracking the accounts receivable at the end of year 1 (i.e., beginning of the second year).
The IRS and Treasury Department intended this recapture provi […]

Under this equation, any income that remains after deducting the cost of goods sold (COGS) qualifies as profit. COGS refers to the direct costs of production such as wages and raw materials. Mary Girsch-Bock is the expert on accounting software and payroll software for The Ascent. It’s just as important to reconcile your credit card […]

Taxable temporary differences are timing differences which cause taxable income in current period to be lower than pretax accounting income subject to taxes and hence income tax payable in current period to be lower than the accrual income tax expense. The difference between the income tax payable and the accrual income tax equals the deferred tax liability. All entities are required to disclose the current and deferred income tax expense components of the total income tax provision from contin […]