Author: Anfisa Dmitrieva

The lower of cost or market method is used to protectretailersand other businesses from fluctuations in inventory purchase prices. Since inventory is a significant number on a retailer’sbalance sheet, a large fluctuation in the value of these assets …

The benefit foregone by choosing another course of action. Also known as the opportunity cost. The lost opportunity is sometimes measured by the lost contribution margin (sales minus the related variable costs)….

Hence, you only have to invest the capital gains amount to save LTCG tax. If you intend to use the proceeds of your land sale to buy more investment property, set up a 1031 Exchange. This will allow you to carry your depreciated cost basis forward to…

On July 1 Matt decides that his company no longer needs its office equipment. Good Deal used the equipment for one month (May 31 through June 30) and had recorded one month’s depreciation of $20. This means the book value of the equipment is $1,080 (…

The company believes this change could impair some of its long-lived assets. The company groups assets at the lowest level with identifiable cash flows and tests them for impairment. One group is the ScioTech operation, which is not a reporting entit…

Credit rating agencies, creditors and investors rely on audits to expose hidden risks to counterparties. A company might overstate its contingent liabilities and scare away investors, pay too much interest on its credit or fail to expand sufficiently…

After all, those are all positive numbers on a balance sheet that can make a company look great. But without considering the debt, business leaders are ignoring key indicators to the financial solvency of the company. Understand the difference betwee…

The fund’s investment advisor, Geode Capital Management, employs a passive strategy, which helps to minimize its costs. Consequently, the fund has a turnover ratio of 4% and charges a low net expense ratio of 0.015%. The Fidelity Spartan 500 Index In…

Under US GAAP and IFRS, goodwill is never amortized, because it is considered to have an indefinite useful life. Instead, management is responsible for valuing goodwill every year and to determine if an impairment is required. If the fair market valu…

Lockbox processing is a cash management service provided by banks to their corporate customers. Lockbox services are designed to accelerate the collection and deposit of check payments, sent with accompanying remittance document(s), through the mail….