Accounting

Some services that fall into the category of assurance services are not directly related to finances, but an assurance firm can still provide you with value in these areas. For instance, CPA firms provide assurance services in the area of data security, performance claims, quality control, and environmental performance. With many of the non-financial assurance services, CPA firms are not the only types of companies that work in the field, so competition for the work can extend far beyond the co […]

Deferred revenue is money received by a company in advance of having earned it. In other words, deferred revenues are not yet revenues and therefore cannot yet be reported on the income statement. As a result, the unearned amount must be deferred to the company’s balance sheet where it will be reported as a liability. For example, a company receives an annual software license fee paid out by a customer upfront on January 1. So, the company using accrual accounting adds only five months&#8 […]

I can’t tell you exactly how much you’ll make on each of your tradelines. That depends on the card as well as how many authorized users you’re comfortable adding per card per month. We simply get the tradeline to appear on the AU’s credit report for two reporting cycles. The AUs only stay on the tradeline for two months in most cases, so there is relatively frequent turnover.
The biggest negative is that you will no longer have an on-going mortgage payment history that l […]

The Federal Accounting Standards Advisory Board recommends evaluating financial conditions affected by subsequent events if the information is known prior to issuing the balance sheet or the financial statements. The balance sheet, usually prepared monthly, provides a summary of a company’s assets, liabilities and equity. By dating and issuing a balance sheet a company represents that the summary includes all transactions and events recorded through the balance sheet date. Subsequent even […]

In 2016, the Financial Accounting Standards Board made an amendment to its accounting rules requiring companies to capitalize all leases with contract terms above one year on their financial statements. The amendment became effective on December 15, 2018, for public companies and December 15, 2019, for private companies. A capital lease is a contract entitling a renter to the temporary use of an asset and has the economic characteristics of asset ownership for accounting purposes. A lease is cl […]

By doing so, all expenses related to a revenue transaction are recorded at the same time as the revenue, which results in an income statement that fully reflects the results of operations. Similarly, the estimated amounts of product returns, sales allowances, and obsolete inventory may be recorded. These estimates may not be entirely correct, and so can lead to materially inaccurate financial statements. Consequently, a considerable amount of care must be used when estimating accrued expenses. […]