Accounting Liabilities

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Difference Between Bond And Loan

Similar to how corporate bonds fund company projects or ventures, municipal bonds fund state or city projects, like building schools or highways. Companies issue callable bonds to allow them to take advantage of a possible drop in interest rates in the future. The issuing company can redeem callable bonds before the maturity date according to ...

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Bad Debt Expense

Wondering if trade credit insurance would be a good fit for your business? Learn how credit insurance works and how to make it work for you here. Self-insure could not help them keep up with increased risk in their industry. Utah Metal Works instead turned to credit insurance for the protection the company needed. Is debt bad for the ...

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Capital Lease Vs Operating Lease

The lessee can only use the assets and pay the lease rentals to the lessor as agreed. Over the years, the nomenclature of Capital Lease is now changing to Finance Lease. Because in most such cases, though, all the risk of the assets lies with the Lessee; however, funding is provided by the Lessor. And that funding is paid back to the Lessor ...

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Attention Required!

A rabbi trust puts a “fence” around the money inside the corporation and protects it from being raided for most uses other than the corporation’s bankruptcy/insolvency. However, plan participants may not receive a guarantee that they’ll be paid prior to creditors being paid in case of insolvency. Deferred compensation ...

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