Accounting Liabilities

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A Thorough Understanding Of Off Balance Sheet Financing

It ensures a minimum level of consistency and makes it easier for investors to analyze and extract useful information from a company. Some non-profits, including Evanston Northwestern Healthcare in suburban Chicago and Iowa Health System in Des Moines, in recent years have sold medical office buildings, and then leased them back. Monetizing ...

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Comparing Deferred Expenses Vs Prepaid Expenses

Below is an example of a journal entry for three months of rent, paid in advance. In this transaction, the Prepaid Rent is increasing, and Cash is decreasing. DebitCreditUnearned Revenue$1,000Revenue$1,000Why is deferred revenue considered a liability? Because it is technically for goods or services still owed to your customers. Before the ...

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How To Estimate Bad Debt Expense

If you don’t have a lot of bad debts, you’ll probably write them off on a case-by-case basis, once it becomes clear that a customer can’t or won’t pay. Accounting Accounting software helps manage payable and receivable accounts, general ledgers, payroll and other accounting activities. Calculate bad debt expense and ...

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Cash Flow From Financing Activities

Recreate journal entries to measure the effect on ledger accounts where several cash transactions have occurred. It would appear as investing activity because purchase of equipment impacts noncurrent assets. A company thinks is appropriate, the impact of the financing decisions will flow through the cash flow statement. If the building is ...

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Accounting For Investment In Bonds

Since the company uses straight-line amortization, we will record the same amount of amortization each time interest is paid. The amount of cash is based on the face rate of the bond. Because the bond purchasers paid extra for the bond, the company more money than the face value of the bond. That additional cash helps to offset the amount the ...

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