Accounting Liabilities

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What Is Hire Purchase?

At the end of the contract, you can choose to keep the car and become its legal owner by paying a final “option to purchase” fee. This will often be smaller than your usual monthly repayments and can be as little as £10, but you should check the terms of your contract to see exactly how much you would need to pay. Purchasing cars ...

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Why Real Estate Investors Should Consider Lease Options

In addition to your monthly mortgage principal and interest, you’ll be paying for homeowners insurance and property taxes, and perhaps homeowners association fees. Unless you’re an expert on your local real estate market and on home financing, check with a Realtor or real estate attorney before buying a seller-financed home. The ...

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What Is Unearned Revenue? Top Faqs On Unearned Revenue

The personal trainers enters $2000 as a debit to cash and $2000 as a credit to unearned revenue. At the end of the month, the owner debits unearned revenue $400 and credits revenue $400. Revenue recognition is a generally accepted accounting principle that dictates how revenue is accounted for. According to GAAP, unearned revenue is ...

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