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The $4 sales tax is a current liability until distributed within the company’s operating period to the government authority collecting sales tax. Because part of the service will be provided in 2019 and the rest in 2020, we need to be careful to keep the recognition of revenue in its proper period. If all of

Large-cap stocks are more frequently traded and usually represent well-established, stable companies. In contrast, small-cap stocks often belong to newer, growth-oriented firms and tend to be more volatile. Public companies need extra cash for many purposes, including upgrading production facilities, expanding into new markets, and pursuing acquisitions. One of the easiest ways to raise funding

Now by definition, we can come to the conclusion that high debt to equity ratio is bad for a company and is viewed negatively by analysts. Note a higher debt-to-equity ratio states the company may have a more difficult time covering its liabilities. In fact, debt can enable the company to grow and generate additional income.

As an example, many nonfinancial corporate businesses have seen their D/E ratios rise in recent years because they’ve increased their debt considerably over the past decade. Over this period, their debt has increased from about $6.4 billion to $12.5 billion (2). It’s also important to note that interest rate trends over time affect borrowing decisions,

Consider factors such as time spent on certain tasks, the level of expertise required, and the costs of performing these tasks in-house. So rushing your vendor by setting unrealistic deadlines might be the wrong approach and set you up for losses. Besides, you can get the provider to offer time-bound services by including a business

The first question you have to ask yourself is whether outsourcing your accounting needs realistically works for your business. Hiring a large accounting firm to cover the full service of all accounts can take a considerable amount from your small company’s net profits. The global business process outsourcing market worth is projected to reach an