Bookkeeping

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In most cases, these contributions are rewarded with a lower rate schedule, often saving the business more money in taxes than was paid through the contribution. The Index rewards states that allow voluntary contributions because firms are able to pay when they can best afford to instead of when they are struggling. This provision helps to mitigate the nonneutralities of

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Just answer simple questions, and we’ll guide you through filing your taxes with confidence. If the borrower files for bankruptcy, this is clear evidence how to write off bad debt you can’t be repaid. Otherwise, the IRS might consider the exchange to be a gift, particularly if the borrower is a friend or a family member. Banks never assume they

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Finally, computer networks use LIFO in the ‘last-in-first-out queue.’ This helps routers specify the order in which data packets must be transmitted between systems. Here, LIFO helps ensure that the data packets reach the intended recipient in a logical order. A common application of LIFO is in the ‘History’ feature of web browsers. Once the ‘Back’ button is tapped, the

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The margin call is the exchange urging you to deposit additional funds to cover the minimum capital requirement. If you are using the book value method, then the estimation would require a calculation based on the price at the time of purchase and multiplying it by the number of purchased shares. Understandably, mark to market is a much more accurate

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It will vary from state to state how long a check, such as a state tax refund check, can be cashed or deposited. But what if you lose a cashier’s check that was made out to you by someone else? If they opt not to purchase a replacement check, you could bring an indemnity bond to the bank that issued

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According to the net method, the company would initially record the sale at net price. If Bob didn’t take advantage of the discount, he wouldn’t have to make an entry. Purchase discounts can be a great way to increase sales and boost your bottom line. But it’s important to understand how they work and choose the right method for your

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That sounds like a mouthful, but often that just looks like inputting all your transactions into accounting software. However, managing your books in a spreadsheet can be time-consuming and error-prone. If not managed properly, spreadsheet tabs may not be linked or up to date. In addition, you can’t integrate spreadsheets with bank statements, credit card reports, or payroll records. And

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Creditors look at AP turnover because it’s a good indication of how quickly a company is paying its bills. A high ratio is a good sign that a company has a strong cash position and is both willing and able to meet its financial obligations. Accounts payable turnover ratio is just another way of saying accounts payable turnover. This ratio

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But as indicated earlier, a high turnover ratio isn’t always what it appears to be, so it shouldn’t be used as the sole marker for short-term liquidity. For example, a higher ratio in most cases indicates that you pay your bills in a timely fashion, but it can also mean that you are forced to pay your bills quickly because

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