Accounting Liabilities

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Capital Lease

If you have an option to purchase the item you are leasing at the end of the lease term for less than the current value of the item, then your lease is a capital lease. This option to purchase and the purchase amount will be spelled out in the terms of your lease. Accounting entries must record a right-of-use asset, with a credit to a lease ...

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How To Calculate Accrued Interest Payable

The accrual period is simply the number of days since the bond last paid interest to the seller. Search your records to see when your bond made its latest coupon payment. This information is available from the financial institution that sold you the bond. The day-count convention determines how the day-count fraction is found when calculating ...

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Bad Debt Provision Definition

If bad debt relief is paid, your company adjusts by reducing the VAT on purchases for the period in which the debt relief payment is received. The two methods used in estimating bad debt expense are 1) Percentage of sales and 2) Percentage of receivables. Individuals are also able to deduct a bad debt from their taxable income if they have ...

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Types Of Liabilities

Other Financial Liabilities Other financial liabilities, including borrowings, are initially measured at fair value, net of transaction costs. Long-term warranties – Some organizations give warranties as after-sales services to its customer to create a long and reliable relationship with them. These warranties, thus, are payable in more than ...

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Equipment Leasing The Ultimate Guide For Small Business Owners

Once done, this statement shall declare that upon a certain number of days after the missed payment date, the penalty amount will be added to the Lessee’s bill. Indicate how often the equipment rent amount must be paid by selecting the most appropriate checkbox item from the list provided. In this way, a one-time payment of the above ...

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