October 09, 2020
Charles Lutwidge
Early Payment Discounts
Definition The main task of early payment discounts is to reduce the maturity of accounts receivable and accelerate the turnover of the company’s working capital. Therefore, this commercial instrument can be attributed to a greater extent to the field of...
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October 09, 2020
Charles Lutwidge
Stock Splits and Stock Dividends
Stock Dividends A stock dividend is a form of dividends that is issued by a corporation instead of issuing cash dividends. Thus instead of actual outflow of cash, the stockholders further receive stocks with no change in the value of...
October 09, 2020
Charles Lutwidge
Recording Transactions for Beginners
Having business records up-to-date and accurate is vital for every company regardless of its size or its business sector. That is why one of the key duties of accountants is to keep track of all company financial transactions by recording...
October 09, 2020
Charles Lutwidge
Financial Ratios You Should Know
The financial ratios of the enterprise allow determining its current state, opportunities, and problems. These ratios are compared with the standards or with the average performance of other enterprises in the industry. Coefficients that go beyond the standard values signal...
October 09, 2020
Charles Lutwidge
Amortizing Bond Premium with the Effective Interest Rate Method
Premium Bonds Let’s assume that the business offers a bond with an interest of 10%, while the investment of similar risk in the market is 8%. Rationally, the investor would certainly choose to invest in the bond. However, the business...
October 09, 2020
Charles Lutwidge
Federal Insurance Contributions Act (FICA)
What is FICA? The Federal Insurance Contributions Act (FICA) is a U.S. tax law that pays for Social Security and medical assistance programs. The Social Security Service pays pensions and survivors’ benefits, as well as benefits for the disabled. Medicare...
October 09, 2020
Charles Lutwidge
Minimum Wage and Overtime Pay
The United States of America is a large, diverse country, with many regions differing significantly in socio-economic and cultural terms. In general, the local population has a good standard of living, and a stable wage for the average American is...
September 29, 2020
Charles Lutwidge
Income Summary Account
Accounting requires all accounts to be balanced in such a way that there is no unrecorded amount of money left over when accessing the books. This requires following the rules for debits and credits, depending through which account the money...
