How do you calculate book value per share?
Book value per share is calculated by totaling the company’s assets, subtracting all debt, liabilities, and the liquidation price of preferred stock, then...
Category: News
In which situation would a company prefer equity financing over debt financing?
The main advantage of debt financing is that a business owner does not give up any control of the business as they do with equity financing. Creditors loo...
Is a commitment fee an interest expense?
In both cases, the IRS concluded that the commitment fees were deductible under Sec. 162 as business expenses rather than under Sec. 163 as interest. Anot...
How do you record loss from fire?
To account for the loss, you record the dollar amount of the damage and reduce or write-off the asset. For example, if $9,000 of inventory is damaged in a...
What type of expense is royalty?
Royalty payments are classified as current expenses on the income statement. Is royalty an operating expense? The royalty expense incurred by the Company ...
What is prepaid rent expense?
A current asset account that reports the amount of future rent expense that was paid in advance of the rental period. The amount reported on the balance s...
Is repairs and maintenance on the balance sheet?
In the case where there are prepaid repairs and maintenance expenses, it means that the company has paid in advance, or has paid an excess amount to the s...
What is food and beverage accounting?
Accounting for Food and Beverage functions. To provide control procedures for at cost Food and Beverage functions.To ensure an accurate accounting of expe...
What is reconciliation of cash flow statement?
Therefore, companies must reconcile the cash flow statement to the income statement through an adjustment and reconciliation process. Under the direct met...
How do you Journalize direct materials?
Requisitioning Materials Company accountants must account for direct and indirect materials separately. The journal entry for direct materials, that is, m...
