Mortgage bankers are lenders that are large enough to originate loans and create pools of loans. Some companies do not sell directly to those major investors but sell their loans to the mortgage bankers. It’s always good to browse different lenders’ …
Difference Between Journal and Ledger
Posted on Posted on: 16.06.2020 Modified on: 11.01.2022Categories Bookkeeping 101 Leave a comment on Difference Between Journal and LedgerReporting requirements, for example, that require a different accounting representation to comply with international or country-specific regulations, create the need for a secondary ledger. Reporting currencies maintain and report accounting transact…
‘Least Squares’ and ‘Linear Regression’, are they synonyms?
Posted on Posted on: 16.06.2020 Modified on: 11.01.2022Categories Bookkeeping 101 Leave a comment on ‘Least Squares’ and ‘Linear Regression’, are they synonyms?There is a close connection between correlation and the slope of the least square line. It is interesting that the least squares regression line always passes through the point (`x , `y ). The correlation (r) describes the strength of a straight line…
Capital Lease Definition
Posted on Posted on: 16.06.2020 Modified on: 11.01.2022Categories Bookkeeping 101 Leave a comment on Capital Lease DefinitionA buyer-lessor has significant economic incentive when the repurchase price is expected to significantly exceed the fair value of the asset at the time of purchase. The classification of the leaseback matters in determining whether sale and leaseback…
Lease vs. Rent: What is the Difference?
Posted on Posted on: 16.06.2020 Modified on: 11.01.2022Categories Bookkeeping 101 Leave a comment on Lease vs. Rent: What is the Difference?The regular lease payments are operating expenses, and thus, come under the income statement. Since the lessee does not get any ownership rights, the asset does not appear in the balance sheet. The sublessor remains liable to the original lessor in a…
Learning Curve: An Important Modern Concept in Economics
Posted on Posted on: 16.06.2020 Modified on: 11.01.2022Categories Bookkeeping 101 Leave a comment on Learning Curve: An Important Modern Concept in EconomicsThe cumulative average hours and cost as well as cumulative total hours and cost are provided below for doubled quantities 1 through 8. Arrow, one of the pioneers in putting forward this concept calls it “Learning by doing”. The slope of the learning…
How to find your landlord
Posted on Posted on: 15.06.2020 Modified on: 11.01.2022Categories Bookkeeping 101 Leave a comment on How to find your landlordThis law has now been repealed but while in force it dramatically altered the industry. Some pubs still offer a regularly changing selection of guest beers. After the development of the large London Porter breweries in the 18th century, the trend gre…
Is Accounts Payable a Credit or Debit
Posted on Posted on: 15.06.2020 Modified on: 11.01.2022Categories Bookkeeping 101 Leave a comment on Is Accounts Payable a Credit or DebitJust like land, buildings are long-term investments that a company typically holds onto for several years. Liabilities include the debts or obligations payable to creditors and other outsiders to which your company owes money. These can be loans, unp…
Accumulated Depreciation-Land Improvements
Posted on Posted on: 15.06.2020 Modified on: 11.01.2022Categories Bookkeeping 101 Leave a comment on Accumulated Depreciation-Land ImprovementsTaxpayers should also ensure that, when the 15-year life is applied to QLHI, the straight-line method is used rather than the 150DB/STL method used for land improvements. A quick fixed asset review could have a significant impact on a taxpayer’s curr…
Comparison of Labor Price Variance vs. Labor Efficiency Variance
Posted on Posted on: 15.06.2020 Modified on: 11.01.2022Categories Bookkeeping 101 Leave a comment on Comparison of Labor Price Variance vs. Labor Efficiency VarianceBecause the company uses 30,000 pounds of paper rather than the 28,000-pound standard, it loses an additional $20,700. Direct labor refers to those who produce goods, such as workers on an assembly line. Usually when dealing with direct labor, the ac…