long-term assets definition and meaning

Posted on 25.09.2020Categories Bookkeeping 101  Leave a comment on long-term assets definition and meaning

what are long lived assets

The two main types of long-lived assets with costs that are typically not allocated over time are land, which is not depreciated, and those intangible assets with indefinite useful lives. Using depreciation, a business expenses a portion of the asset’s value over each year of its useful life, instead of allocating the entire expense to the year in which the asset is purchased. This means that each year that the equipment or machinery is put to use, the cost associated with using up the asset is recorded. The rate at which a company chooses to depreciate its assets may result in a book value that differs from the current market value of the assets. Long-term assets are investments in a company that will benefit the company for many years.


The remaining assets are long-term, or assets that cannot easily be converted to cash within a year. Property, Plant, and Equipment, also termed Fixed Assets, includes buildings, automobiles, and machinery that the business owns. You might also see an account called Accumulated Depreciation; it reflects the fact that fixed assets lose their value over time, and adjusts the balance accordingly. Fixed assetsare noncurrent assets meaning the assets have auseful lifeof more than one year. Fixed assets includeproperty, plant, and equipment(PP&E) and are recorded on the balance sheet.

Long-term assets including property, plant, equipment and intangible assets. Buildings, furnishings, fixtures, office equipment, and vehicles are common examples of long-lived assets which are depreciated by nonprofit and by for-profit organizations. Goodwill is a long-term (or noncurrent) asset categorized as an intangible asset. The amount of goodwill is the cost to purchase the business minus the fair market value of the tangible assets, the intangible assets that can be identified, and the liabilities obtained in the purchase.

Is land a long lived asset?

long-lived assets definition. Long-term assets including property, plant, equipment and intangible assets. Buildings, furnishings, fixtures, office equipment, and vehicles are common examples of long-lived assets which are depreciated by nonprofit and by for-profit organizations.

extraordinary repairs, replacements, and additions occur infrequently and involve large expenditures. they increase the asset’s usefulness through enhanced efficiency, capacity or lifespan.

Section 5 covers the concepts of impairment (unexpected decline in the value of an asset). Section 6 describes accounting for the derecognition of long-lived assets. Section 7 describes financial statement presentation, disclosures, and analysis of long-lived assets. Section 8 discusses differences in financial reporting of investment property compared with property, plant, and equipment.

This means that Tia would record depreciation for each of her tangible long-lived assets separately. The amount of depreciation recorded over the life of the asset is known as accumulated depreciation and this amount is deducted from the cost of the asset for presentation on the financial statements. Section 2 describes and illustrates accounting for the acquisition of long-lived assets, with particular attention to the impact of capitalizing versus expensing expenditures. Section 3 describes the allocation of the costs of long-lived assets over their useful lives. Section 4 discusses the revaluation model that is based on changes in the fair value of an asset.

In short, capital investment for fixed assets means the company plans to use the assets for several years. Current assets include all the items the business owns that can easily be converted to cash within a year’s time. The most common types of current assets include balances in checking and savings accounts, accounts receivable, and inventory for sale.

Fixed assets are recorded on the balance sheet and listed asproperty, plant, and equipment(PP&E). Fixed assets arelong-term assetsand are referred to as tangible assets, meaning they can be physically touched. Long-term assets can include fixed assets such as a company’s property, plant, and equipment, but can also include intangible assets, which can’t be physically touched such as long-term investments or a company’s trademark. The balance sheet shows a company’s resources or assets while also showing how those assets are financed whether through debt as shown under liabilities or through issuing equity as shown in shareholder’s equity. Current assets are short-term assets, whereas fixed assets are typically long-term assets.

Fixed assets are also referred to as tangible assets, meaning they’re physical assets. A company can develop long-lived intangible assets in-house or it can purchase them when acquiring another business. The costs related to Tia’s patent could include the research and development costs incurred over time as the company was perfecting its unique treat-making process. The first issue in accounting for a long-lived asset is determining its cost at acquisition. The costs of most long-lived assets are capitalised and then allocated as expenses in the profit or loss (income) statement over the period of time during which they are expected to provide economic benefits.

what are long lived assets

Long-lived assets, also referred to as non-current assets or long-term assets, are assets that are expected to provide economic benefits over a future period of time, typically greater than one year. The scope of this reading is limited to long-lived tangible and intangible assets (hereafter, referred to for simplicity as long-lived assets). Assets that are not intended to be turned into cash or be consumed within one year of the balance sheet date. Long-term assets include long-term investments, property, plant, equipment, intangible assets, etc. Fixed assetsare noncurrent assets that a company uses in its production or goods and services that have a life of more than one year.

If a company purchases a patent or some other intellectual property item, then the formula for carrying value is (original cost – amortization expense). For example, understanding which assets are current assets and which are fixed assets is important in understanding the net working capital of a company. In the scenario of a company in a high-risk industry, understanding which assets are tangible and intangible helps to assess its solvency and risk. Long-term assets include fixed assets but also include intangible assets as well.

  • Long-lived assets, also referred to as non-current assets or long-term assets, are assets that are expected to provide economic benefits over a future period of time, typically greater than one year.
  • Assets that are not intended to be turned into cash or be consumed within one year of the balance sheet date.

In short, long-term assets is an umbrella term to cover all assets that have a useful life of more than one year in which fixed assets are listed under that umbrella. Capitalized property, plant, and equipment (PP&E) are also included in long-term assets, except for the portion designated to be expensed or depreciated in the current year. Capitalized assets are long-term operating assets that are useful for more than one period.

long-lived assets definition

Capital investment decisions are long-term funding decisions that involve capital assets such as fixed assets. Capital investments can come from many sources, including angel investors, banks, equity investors, and venture capital. Capital investment might include purchases of equipment and machinery or a new manufacturing plant to expand a business.

Capital assets are significant pieces of property such as homes, cars, investment properties, stocks, bonds, and even collectibles or art. For businesses, a capital asset is an asset with a useful life longer than a year that is not intended for sale in the regular course of the business’s operation. For example, if one company buys a computer to use in its office, the computer is a capital asset. If another company buys the same computer to sell, it is considered inventory.

Long-term assets are investments that can require large amounts of capital and as a result, can increase a company’s debt or drain their cash. A limitation in analyzing long-term assets is that investors won’t see the benefits for a long time, perhaps years. Investors are left to trust the company’s executive management team’s ability to map out the future of the company and allocate capital effectively.

ordinary repairs and maintenance are expenditures for the routine maintenance and upkeep of long-lived assets.these are recurring, relatively small expenditures that do not directly increase an asset’s usefulness. they are recorded as expenses in the current period and are matched to revenues, so ordinary repairs are sometimes called revenue expenditures 2.

It’s also important to know how the company plans to raise the capital for their projects, whether the money comes from a new issuance of equity, or financing from banks or private equity firms. Fixed assets undergo depreciation, which divides a company’s cost for non-current assets to expense them over their useful lives. Depreciation helps a company avoid a major loss when a company makes a fixed asset purchase by spreading the cost out over many years. Carrying value is an accounting measure of value in which the value of an asset or company is based on the figures in the respective company’s balance sheet. For physical assets, such as machinery or computer hardware, carrying cost is calculated as (original cost – accumulated depreciation).

Long-term assets can include fixed assets such as a company’s property, plant, and equipment, but can also include other assets such as long-term investments or patents. Knowing where a company is allocating its capital and how it finances those investments is critical information before making an investment decision. A company might be allocating capital to current assets, meaning they need short-term cash. Or the company could be expanding its market share by investing in long-term fixed assets.

because they increase the lifespan of tangible assets, they are added to the appropriate long-lived asset accounts. extraordinary repairs capitalize costs and are also called capital expenditures. A long-term asset is an asset that is not expected to be converted to cash or be consumed within one year of the date shown in the heading of the balance sheet. Hence, long-term assets are also known as noncurrent assets or long-lived assets.

Noncurrent assetsare a company’slong-term investmentsor assets that have a useful life of more than one year and usually last for several years. Noncurrent assets are considered illiquid, meaning they can’t be easily liquidated into cash. Long-term assets are considered noncurrent assets and the two terms are used interchangeably. Long-term assets are listed on the balance sheet, which provides a snapshot in time of the company’s assets, liabilities, and shareholder equity.

what are long lived assets

Defining Long-Lived Assets

Firms do not have to deduct the entire cost of the asset from net income in the year it is purchased if it will give value for more than one year. Changes in long-term assets can be a sign of capital investment or liquidation. If a company is investing in its long-term health, it will likely use the capital for asset purchases designed to drive earnings in the long-term. However, investors must be aware that some companies sell their long-term assets to raise cash to meet short-term operational costs, or pay the debt, which can be a warning sign that a company is in financial difficulty.

Long-term assets can include fixed assets such as a company’s property, plant, and equipment but can also include other assets such as long-term investments or patents. Tangible long-lived assets lose value as they are used over time and this is known as depreciation. A company would record depreciation or the cost of using the asset every year in the same period as the revenue the asset helped the company to earn.


Posted on 24.09.2020Categories Bookkeeping 101  Leave a comment on HOW TO DOUBLE YOUR MONEY

In contrast, when someone buys stock from a corporation, they essentially buy a piece of the company. If the company profits, the investor profits as well, but if the company loses money, the stock also loses money. In the event that the corporation goes bankrupt, it pays bondholders before shareholders.

The interest rate on a debt security is largely determined by the perceived repayment ability of the borrower; higher risks of payment default almost always lead to higher interest rates to borrow capital. Also known as fixed-income securities, most debt securities are traded over the counter. The total dollar value of debt security trades conducted daily is much larger than that of stocks, as debt securities are held by many large institutional investors as well as governments and nonprofit organizations. Securities are traded on financial exchanges around the world, such as the New York Stock Exchange, the Nasdaq, the London Stock Exchange, or in the case of fixed-income investments, in the secondary markets. Mutual funds and exchange-traded funds hold securities in their portfolios, and are sold by investment firms, banks, and other financial institutions.

However, equity generally entitles the holder to a pro rata portion of control of the company, meaning that a holder of a majority of the equity is usually entitled to control the issuer. Equity also enjoys the right to profits and capital gain, whereas holders of debt securities receive only interest and repayment of principal regardless of how well the issuer performs financially. Furthermore, debt securities do not have voting rights outside of bankruptcy.

What is a security investment?

In the investing sense, securities are broadly defined as financial instruments that hold value and can be traded between parties. In other words, it’s a catch-all term for stocks, bonds, mutual funds, exchange-traded funds or other types of investments you can buy or sell.

Are all mortgage backed securities (MBS) also collateralized debt obligations (CDO)?

That way, you’ll enjoy higher returns offered by lower-risk investments. For the primary market to thrive, there must be a secondary market, or aftermarket that provides liquidity for the investment security—where holders of securities can sell them to other investors for cash.

Where A is owed a debt or other obligation by B, A may require B to deliver property rights in securities to A, either at inception (transfer of title) or only in default (non-transfer-of-title institutional). For institutional loans, property rights are not transferred but nevertheless enable A to satisfy its claims in the event that B fails to make good on its obligations to A or otherwise becomes insolvent. Collateral arrangements are divided into two broad categories, namely security interests and outright collateral transfers. Commonly, commercial banks, investment banks, government agencies and other institutional investors such as mutual funds are significant collateral takers as well as providers. In addition, private parties may utilize stocks or other securities as collateral for portfolio loans in securities lending scenarios.

However, while some funds are less volatile than stocks, this is not true for the entire universe of mutual funds. Finding safe investments with high returns is one of the best ways to protect and grow your money to build lasting wealth. You may want to keep most of your money into super safe investments, like high-yield savings accounts, CDs and US Treasury securities. But if you are looking to get better overall returns, start by investing small amounts of money in bonds, dividend-paying stocks, REITs, real estate or P2P lending.

Discount brokerages have become increasingly popular with investors thanks to ever-decreasing commission fees. These brokerages, like large supermarkets, offer investors a huge selection at a low cost. At almost all discount brokerages, you can buy stocks, bonds, or mutual funds either by calling one of the investment representatives—who will collect a commission—or completing the transaction yourself online. One of the most common and easiest ways of buying and selling stocks, mutual funds, and bonds is through a brokerage house.

What’s the Difference Between Stocks and Bonds?

  • Where A is owed a debt or other obligation by B, A may require B to deliver property rights in securities to A, either at inception (transfer of title) or only in default (non-transfer-of-title institutional).
  • The last decade has seen an enormous growth in the use of securities as collateral.

The last decade has seen an enormous growth in the use of securities as collateral. Purchasing securities with borrowed money secured by other securities or cash itself is called “buying on margin”.

Bond Basics

Otherwise, few people would purchase primary issues, and, thus, companies and governments would be restricted in raising equity capital (money) for their operations. Many smaller issues and most debt securities trade in the decentralized, dealer-based over-the-counter markets. An equity security is a share of equity interest in an entity such as the capital stock of a company, trust or partnership. The most common form of equity interest is common stock, although preferred equity is also a form of capital stock. The holder of an equity is a shareholder, owning a share, or fractional part of the issuer.

Generally, securities represent an investment and a means by which municipalities, companies, and other commercial enterprises can raise new capital. Companies can generate a lot of money when they go public, selling stock in an initial public offering (IPO), for example. City, state or county governments can raise funds for a particular project by floating a municipal bond issue. Depending on an institution’s market demand or pricing structure, raising capital through securities can be a preferred alternative to financing through a bank loan.

what are investment securities

Equity securities represent a claim on the earnings and assets of a corporation, while debt securities are investments into debt instruments. For example, a stock is an equity security, while a bond is a debt security. When an investor buys a corporate bond, they are essentially loaning the corporation money, and they have the right to be repaid the principal and interest on the bond.

Brokerage firms typically require you to open an account with them and deposit a certain amount of funds as a show of good faith. Brokerages are popular because they (rather than you) do much of the behind-the-scenes work, such as completing the necessary paperwork and ensuring timely dividend payments. Choosing the right broker is an important first step for new investors. One key aspect of investing that is sometimes overlooked is the way different securities are bought and sold. This flight may be an effective tactic for investors who are risk-averse as they flee equities for the perceived safety of the fixed-income investment world.

Understanding Investment Securities

Unlike debt securities, which typically require regular payments (interest) to the holder, equity securities are not entitled to any payment. In bankruptcy, they share only in the residual interest of the issuer after all obligations have been paid out to creditors.

Securities may be represented by a certificate or, more typically, “non-certificated”, that is in electronic (dematerialized) or “book entry” only form. While stocks and bonds (more on those securities below) are the most common form of publicly-traded securities, they’re not the only ones. The entity that creates the securities for sale is known as the issuer, and those that buy them are, of course, investors.

In other words, equity holders are entitled to the “upside” of the business and to control the business. are like mutual funds in that investors pool their money into a fund made up of many different securities, like stocks, bonds and other assets. They tend to cost less than mutual funds since they’re low-cost index funds and are usually passively managed. consist of many different types of securities, including stocks and bonds. It pools the money of many different investors and the combined funds make up shares in a portfolio.

Indentured Servants In The U.S.

Posted on 24.09.2020Categories Bookkeeping 101  Leave a comment on Indentured Servants In The U.S.

what are indentures

Wild deeds

When the agreement was made before a court of law a tripartite indenture was made, with the third piece kept at the court. The term is used for any kind of deed executed by more than one party, in contrast to a deed poll which is made by one individual. In the case of bonds, the indenture shows the pledge, promises, representations and covenants of the issuing party.

Your mortgage lender will be happy to supply you with a copy of the title deeds but will charge you a fee for doing so. The first thing to recognise, as you will already have realised from reading the above, is that both the pre-registration title deeds and the post-registration title plans may contain a very poor and inaccurate description of the boundaries. Leaving these technical difficulties to one side, there may be insurmountable difficulties in gaining sight of the title deeds.

In short, the parcels clause is at best an inadequate description of the size and shape of the parcel of land, and that description lacks any quality control. It is therefore unsafe to rely on the parcels clause alone for a definition of the exact position of the boundaries. To put it another way, you shouldn’t automatically assume that a given dimension is accurate simply because some unknown person has seen fit to write it into a deed or onto a deed plan. This advice holds true regardless of the status of the deed as a legal document. have decided that the title deeds are not needed as security because title to registered land is guaranteed by the state and their interest in the land (the outstanding part of the mortgage loan) is protected because they have registered a charge against the title.


No trust relationship exists between the bondholder and the issuing corporation. These two are in a regular contractual, arm’s length, non-fiduciary, non-equity relationship. A trust indenture is similar to a bond indenture, except it also details the trustee’s responsibilities in overseeing all of a bond issue’s terms. Typically a credit indenture is used for the sake of bond issuers andbondholders. It specifies the important features of a bond, such as itsmaturity date, the timing of interest payments, method of interest calculation, callability, and convertible features-if applicable.

Traditionally, they have held the title deeds for unregistered land as security against the loan that they have made to the purchaser of the land. If the mortgage lender holds the title deeds then the landowner is unable to sell the land without the mortgage lender’s knowledge and agreement. An indenture is a legal contract between two parties, particularly for indentured labour or a term of apprenticeship but also for certain land transactions.

If you own unregistered land and have no mortgage then you may either hold the title deeds or you may have deposited them at a bank or with a solicitor for safe keeping. If you are the owner of unregistered land with a mortgage then you will probably never have seen yourtitle deeds as they will be held by your mortgage lender as security against the mortgage loan. Your mortgage lender will be happy to supply you with a copy of the title deeds but will charge you a fee.

Certain types of documents are not legally binding unless they are made in the form of deeds. If you own registered land and have a mortgage then your mortgage lender may have decided that the pre-registration title deeds are not needed as security because they have registered the mortgage as a charge against the title. In this case the mortgage lender may have returned the title deeds to you or may simply have destroyed them. If you own registered land and have a mortgage then your mortgage lender may still be holding the pre-registration title deeds and will be happy to supply you with a copy of them but will charge you a fee for doing so. If you own unregistered land and have a mortgage then your mortgage lender will be holding the title deeds as security against the mortgage loan.

Is an indenture the same as a deed?

The term is used for any kind of deed executed by more than one party, in contrast to a deed poll which is made by one individual. In the case of bonds, the indenture shows the pledge, promises, representations and covenants of the issuing party.

Bonds are issued to lenders or investors to raise money for a corporation or governmental body. To issue a bond, the issuer hires a third-party trustee, usually a bank or trust company, to represent investors who buy the bond. The agreement entered into by the issuer, and the trustee is referred to as the trust indenture. A trust indenture describes the bond’s characteristics and the terms of its callability. It also delineates the amount of additional debt the issuer can assume, and the circumstances and procedures in case of issuer default.

Bond indenture

A bond indenture also contains all the terms and conditions applicable to the bond issue. Other critical information included in the indenture are the financial covenants that govern the issuer and the formulas for calculating whether the issuer is within the covenants (usually ratios based on corporate financials).

  • Title deeds are documents showing ownership, as well as rights, obligations, or mortgages on the property.

Deeds of conveyance

If you own registered land and have no mortgage then you may either hold the pre-registration title deeds or you may find that they were destroyed by someone else long before you bought the property. Bond indenture (also trust indenture or deed of trust) is a legal document issued to lenders and describes key terms such as the interest rate, maturity date, convertibility, pledge, promises, representations, covenants, and other terms of the bond offering. When the offering memorandum is prepared in advance of marketing a bond, the indenture will typically be summarised in the “description of notes” section. Indenture refers to a legal and binding agreement, contract, or document between two or more parties. Traditionally, these documents featured indented sides or perforated edges.

Title deeds are documents showing ownership, as well as rights, obligations, or mortgages on the property. Since around 2000, compulsory registration has been required for all properties mortgaged or transferred. The details of rights, obligations, and covenants referred to in deeds will be transferred to the register, a contract describing the property ownership. Consequently, many sets of title deeds have been destroyed, although some have been returned to landowners. A mortgage lender who has made loans against 1,000,000 properties, and who keeps the title deeds for each property in a separate lever arch file, requires nearly 80 km (50 miles) of shelving on which to store all of those title deeds.

A Deed of Variation is used to vary the terms of an earlier deed relating to the same matter. One example of its use is to correct an inaccurate description of the boundary in the parcels clause of an earlier Conveyance that relates to the same parcel of land.

At common law, ownership was proven via an unbroken chain of title deeds. This system removes risks associated with unregistered deeds and fraudulent or otherwise incorrect transactions. Some Australian properties are still conveyed using a chain of title deeds – usually properties that have been owned by the same family since the nineteenth century – and these are often referred to as ‘Old System’ deeds. In the United States, public debt offerings in excess of $10 million require the use of an indenture of trust under the Trust Indenture Act of 1939. The rationale for this is that it is necessary to establish a collective action mechanism under which creditors can collect in a fair, orderly manner if default takes place (like that which occurs during bankruptcy).

Deed of trust

A callable bond is essentially a bond with an embedded call option attached to it. Similar to its options contract cousin, this bond option gives the issuer the right—but not the obligation—to exercise the claim. The indenture will define if calls can redeem only a portion of the bonds associated with an issue or the entire issue. When redeeming only a portion of the issue, bondholders are chosen through a random selection process.

Corporate issues for less than $5 million, municipal bonds, and bonds issued by the government are not required to file trust indentures with the SEC. Of course, these exempted entities may choose to create a trust indenture to reassure prospective bond buyers, if not to adhere to any federal law.

A trust indenture is a legal and binding contract that is created to protect the interests of bondholders. The trustee’s name and contact information is included in the document, which highlights the terms and conditions that the issuer, lender, and trustee must adhere to during the life of the bond. The section on the trustee’s role is important, as it gives a clear indication of how unforeseen incidents will be dealt with. For example, if a conflict of interest comes up involving the trustee’s role as a fiduciary, in certain trust indentures, the issue must be resolved within 90 days.

A trust indenture is an agreement in a bond contract made between a bond issuer and a trustee that represents the bondholder’s interests by highlighting the rules and responsibilities that each party must adhere to. It may also indicate where the income stream for the bond is derived from.

Another example is the deliberate re-routing of a private right of way across theservient tenement. A Conveyance (or Deed of Conveyance) is the document by which the sale of a parcel of unregistered land is effected. An indenture agreement is the formal contract between a bond issuer and the bondholders. It sets forth the details of all the terms and conditions of the bonds, such as the exact day of their maturity, the timing of the interest payments and how they are calculated, and the details of any special features.

Historically, indenture has also referred to a contract binding one person to work for another for a set period of time (indentured servant), particularly European immigrants. In modern day finance, the word indenture most commonly appears in bond agreements, real estate deals, and some aspects ofbankruptcies. A copy of it must be filed with the Securities and Exchange Commission (SEC) for corporate bonds with aggregate principal issues of at least $5 million.

what are indentures

So there is a big incentive for the mortgage lenders not to store title deeds that they don’t need to store. Then there is the attitude of the mortgage lenders towards document storage.

Economic Order Quantity Model in Inventory Management

Posted on 24.09.2020Categories Bookkeeping 101  Leave a comment on Economic Order Quantity Model in Inventory Management

Understanding Holding Costs

I still flip houses because I love flipping and it generates a lot of income. My market is also much easier to flip in right now because of the high prices. I can use private money, hard money, bank money, and partners to flip houses. Those lenders don’t mind short-term loans that are one or two years in length.

Even though I think long-term rentals provide a better investment over time, I still do many house flips to generate income. I actually use much of the income from my fix and flips to purchase long-term rental properties.

I have been flipping houses since 2014 and to date have completed 14 flips. Jason is a full-time house flipper that has been flipping houses for over 5 years and to date has completed 14 flips. He is also a real estate agent as well as a writer and editor for Flipping Prosperity.

Annual usage may equal the prior year’s units sold, forecast-sales units or a combination of both. In turn, the order-placement cost includes order-processing costs, shipping and order-receipt costs and stocking costs. Such costs include the cost to create a purchase order, process the materials on receipt, process a vendor invoice and issue a payment. Carrying costs are the variable per-unit-holding costs, such as credit interest, inventory-insurance costs and storage costs. When large quantities are ordered or produced, inventory holding costs are increased, but ordering/setup costs decrease.

In a periodic inventory policy, the inventory level is checked periodically (such as once a month) and an order is placed at that time as to meet the expected demand until the next order. In this case, the safety stock is calculated considering the demand and supply variability risks during this period plus the replenishment lead time. In this case, safety stock is calculated considering the risk of only the replenishment lead time. If applied correctly, continuous inventory policies can lead to smaller safety stock whilst ensuring higher service levels, in line with lean processes and more efficient overall business management. However, continuous inventory policies are much harder to implement, so most of the organisations using traditional planning processes and tools opt for periodic inventory policy.

Learn How to Analyze a House Flip

With fix and flips, I want to make sure I can sell the house for a profit in less than 6 months and I am not worried about the location, cash flow or cash on cash return as much. You can depreciate the structure which means it is possible to lose money on paper, but make money in reality.

What is a holding cost in real estate?

Holding costs are those associated with storing inventory that remains unsold. These costs are one component of total inventory costs, along with ordering and shortage costs. A firm’s holding costs include the price of goods damaged or spoiled, as well as that of storage space, labor, and insurance.

Conversely, when lot sizes decrease, inventory holding/carrying costs decrease, but the cost of ordering/setup increases since more orders/setups are required to meet demand. When the two costs are equal (holding/carrying costs and ordering/setup costs) the total cost (the sum of the two costs) is minimized. Cycle inventories, sometimes called lot-size inventories, result from this process. Usually, excess material is ordered and, consequently, held in inventory in an effort to reach this minimization point. Hence, cycle inventory results from ordering in batches or lot sizes rather than ordering material strictly as needed.

The biggest reason I like long-term rental properties is the cash flow. Many properties will provide great cash flow, but not very much income if I were to flip the homes. Likewise, many fix and flips can provide great income if repaired and sold, but not much cash flow if rented. The area, bedroom count, cost of the home all must be taken into consideration on whether the house will be a better fix and flip or buy and hold rental. The EOQ model finds the economic order quantity by taking the square root of 2 multiplied by the number of units sold per year and the order-placement cost divided by a unit’s carrying cost per period.

The less accurate the forecast, the more safety stock is required to ensure a given level of service. With an MRP worksheet, a company can judge how much it must produce to meet its forecasted sales demand without relying on safety stock. However, a common strategy is to try to reduce the level of safety stock to help keep inventory costs low once the product demand becomes more predictable.

As a real estate agent, it is easy for me to determine the values on houses. Since the small towns are farther away and have less certainty in the rental market I do not buy rentals in them. Small towns are also the hardest hit when the market goes down or vacancies go up. I complete fix and flips a year and I also own 16 long-term rental properties. I have very strict guidelines that my rental properties must meet; cash flow, cash on cash return, location, condition, age and more.

I have kept flipping houses because the profit margins are still there on the flips. There are almost always opportunities to flip houses, but there are not always opportunities to make money with rentals. Although I stopped buying residential rentals in my market, I have been buying commercial properties in the last few years which do make money.

The amount of safety stock that an organization chooses to keep on hand can dramatically affect its business. In addition, products that are stored for too long a time can spoil, expire, or break during the warehousing process. Too little safety stock can result in lost sales and, in the thus a higher rate of customer turnover. As a result, finding the right balance between too much and too little safety stock is essential.

  • There are almost always opportunities to flip houses, but there are not always opportunities to make money with rentals.
  • I have kept flipping houses because the profit margins are still there on the flips.
  • Although I stopped buying residential rentals in my market, I have been buying commercial properties in the last few years which do make money.

You can depreciate or deduct almost all of the expenses including the interest on the loan. When you sell a rental you also pay long-term capital gains taxes most of the time which is lower than short term capital gains (flips).

I can use these other sources to finance rentals, but at some point will need to refinance into a long-term loan. That would make you think a flip is harder to find than a good rental property but that is not the case for me. It is easier for me to find a good flip because I do not worry about the neighborhood, the age of the home, or other factors that concern me with a long-term hold property. I do not like old rentals because they will have more maintenance and cost me more money eventually. I do not worry as much about buying older flips because I will not be holding on to them.

Carrying costs are usually 15% to 30% of the value of a company’s inventory. This is a significant figure as it tells the company how long they can keep their inventory before they start losing money over unsalable items. Additionally, it shows how much they need to sell and buy in order to maintain appropriate inventory levels.

How is holding cost calculated?

​Holding Costs (also known as carrying costs) are the monthly holding costs that you will incur while you are holding the property, such as property taxes, insurance, utilities and maintenance costs.

What Are Examples of Cost of Goods Sold (COGS) for Businesses That Sell Online?

I think you can flip houses in just about any market although you will need more money to flip when housing prices are high. It is harder to find great rentals in every market because rents tend not to keep up with home prices when values are high. This article goes over the pros and cons of buying and holding rental properties as well as house flips.

I complete 20 to 30 fix and flips every year, and I also own 20 long-term rental properties. I have certain guidelines I use to determine if I will flip a house, or hold it as a rental property. There are many factors I take into account, but I have much stricter criteria for my rentals than I do my house flips. Hi, my name is Jason and I am a full-time house flipper and real estate agent.

Calculating carrying cost and knowing how to minimize it can help a company reclaim money tied up in inventory and increase its profits. If a house needs a lot of work; new kitchen, new baths, carpet, paint, roof it can cost $20,000 to $30,000 or more to repair the home. I am already putting 20% down on my rental properties and adding $30,000 in repairs on top of the down payment means I may have $50,000 or more into a rental property. Having that much cash into a rental will lower my cash on cash returns and limit my ability to buy more rental properties.


what are holding costs

I can refinance my rentals, but I usually have to wait a year to take cash out. It is easier for me to find a property to fix and flip because I have such strict buying criteria on my rentals.

what are holding costs

It may seem like a long time to get your money back out of a rental, but it can take just as long to get money out of a flip. My average time to flip a house is about 6 months, but the big projects can take much longer. Flipping houses is not an amazing advantage over rentals because of the time it takes to flip and the costs to flip. If I had to choose between buying more flips and buying more rentals, I would buy more rentals. I love the long-term cash flow, and if you refinance them you don’t have to have that much cash tied up in the property.

In marketing, carrying cost, carrying cost of inventory or holding cost refers to the total cost of holding inventory. This includes warehousing costs such as rent, utilities and salaries, financial costs such as opportunity cost, and inventory costs related to perishability, shrinkage (leakage) and insurance. When there are no transaction costs for shipment, carrying costs are minimized when no excess inventory is held at all, as in a Just In Time production system. The size of the safety stock depends on the type of inventory policy in effect. An inventory node is supplied from a “source” which fulfills orders for the considered product after a certain replenishment lead time.

I buy my rental properties based on cash flow and I assume I will hold them for many years, if not forever. I want to make sure my rentals are great properties that will be easy to manage. I am very picky about the location, condition, and age because I am holding these properties so long. Even though I think it makes more sense to buy and hold properties for long-term wealth, I still fix and flip homes. There are some homes that work great as fix and flips, and some homes that work better as rentals.

How to Negotiate the Best Price for an Extended Warranty

Posted on 24.09.2020Categories Bookkeeping 101  Leave a comment on How to Negotiate the Best Price for an Extended Warranty

An Extended Vehicle Protection Plan with CARCHEX offers the following benefits. CARCHEX markets and sells extended warranties on behalf of third party extended warranty providers, and your extended warranty will be between you and the provider.


Before renewing your home warranty contract, consider everything from the items covered to the limit on what the company will pay out, as well as any restrictions on services and additional service fees. If you’re not satisfied with your current coverage but want to invest in a plan that can help protect your savings in the event of an emergency, you may want to take a look at our top 8 home warranty companies and compare the plans they offer. Let us look at an example of accounting for extended warranty revenues. Assume that Company ABC from the example earlier also sells extended warranties on gadgets XYZ.

Warranty expense

Vehicle service contracts- commonly referred to as extended auto warranties, protect both Honda and Acura vehicles. There are far too many things Acura owners assume but don’t fully know when it comes to their extended warranty options for their vehicle, let alone the factory warranty that came with it.

While the Infiniti dealership doesn’t give a price estimate for its extended warranty, most dealership plans cost $1,000 to $1,500. This can be an expensive addition to your car’s monthly payment and restrict where you can take your car to be repaired. Another option is to purchase a third-party extended warranty from CARCHEX. The price of an Infiniti extended warranty from CARCHEX will depend on the amount of coverage and the length of time you need it for, but we offer more flexibility in terms of coverage and cost.

Optional CARCHEX Warranty Coverage

Endurance offers a wide range of coverage plans that provide total protection to customers. We know that people have different driving habits and depending on your vehicle information, we work to find the most suitable plan for you. is the warranty provider of choice for many California (only) residences struggling to find quality options in the state. The company’s line of insurance plans is great for saving money on services and repairs that come up unexpectedly. Long Island residents will want to get a quote from a local Lexus Finance Center to account for the higher cost of living in NYC.

A simple extended warranty is affordable and can protect your vehicle from factory defects. However, if you have an older car or truck, the GMPP options may offer more protection. Also, you have the option of increasing protection even further with the GMPP plan, which is a more traditional service contract that provides more perks than Chevy’s extended warranty.

warranty cost


CARCHEX will not pick up the cost of repairs due to neglecting to maintain your vehicle. This list is not all-inclusive, so see the contracts available on the CARCHEX website or talk to a representative for details. Chevy’s extended limited warranty and its General Motors Protection Plan offer different services that may be useful depending on what your needs are.

How much should an extended warranty cost?

CARCHEX Car Warranty Prices and Guarantee
The average cost for a car warranty across the industry is around $1,200, and depending on the package you choose, your vehicle, and the length of the warranty, you may pay more or less. CARCHEX offers a no-haggle, low price, everyday guarantee.

But when you divide that price up into affordably low monthly payments, protection for your vehicle ends up costing a whole lot less than your cable bill. The trip interruption coverage comes in handy if you are traveling by car and your vehicle has a repair issue that keeps it from running safely.

Outside of having to pay for this used car warranty for your Acura vehicle, you’re limited to where you can actually have your car serviced. Acura restricts you only using their approved dealerships and service centers. Acura owners aren’t just driving the luxury marquee from Honda, they are also backed by Honda’s industry-leading factory warranty. Even if Acura cars a built better than typical Hondas they still eventually break down and become even more costly to repair than their automotive relatives. This is why Acura owners, perhaps more than Honda owners, should have protection from an Acura extended warranty.

From the Bronze Coverage plan that protects you from the most common and expensive repairs to the Titanium Coverage plan that provides the maximum amount of protection for your car, CARCHEX provides a number of options to fit your needs. We have options for hybrid or electric vehicles, as well as those that have passed the 100,000-mile mark. Understand your coverage plan options for a Volvo extended warranty and how you can get the best plan for your vehicle and driving needs. Read on to discover the differences between your basic factory Volvo warranty and an extended warranty, and why getting extended coverage from CARCHEX is a smart option for Volvo owners. Typically the average cost of an extended car warranty would be around the range of $1,800 with a good quality package and after-sales service.

To offer an extensive selection of car warranties, CARCHEX provides five levels of vehicle service contracts. You can view each car warranty contract on the CARCHEX website, and we listed a summary of what each level covers below.

  • Another option is to purchase a third-party extended warranty from CARCHEX.
  • This can be an expensive addition to your car’s monthly payment and restrict where you can take your car to be repaired.
  • While the Infiniti dealership doesn’t give a price estimate for its extended warranty, most dealership plans cost $1,000 to $1,500.

Due to Acura charging customers for their extended warranties, you may be thinking that there is no difference if you buy from them or a third-party coverage provider. As a direct provider of vehicle protection, Endurance, can offer drivers affordable plans with competitive rates for the absolute longest coverage terms. For more information, see this FTC link or learn more here or by reviewing CARCHEX’s website.

warranty cost

Extended warranties go into effect after standard warranties expire (on the first anniversary of the gadget sale date) and cover the products for additional two years. In our example, for the gadgets sold in May 20X3, extended warranties sold by the company amounted to $4,800. The coverage period for the extended warranties is May 20X4 to April 20X5.

This website site is intended solely for the purpose of providing general information regarding the purchase of extended warranties. Specific contract terms, rates, taxes, fees and other charges are determined upon validation of vehicle information and acceptance by the extended warranty provider, for which CARCHEX is not responsible. However, after these warranties expire, you will be left to pay the cost of repairs and replacements for your vehicle parts out of pocket.

General Motors recently launched a program that offers customers an extended warranty stretching bumper-to-bumper coverage to five years or 60,000 miles for Chevrolet and GMC vehicles, and to six years or 70,000 miles for Buick and Cadillac customers. The regular new-car warranties for those vehicles are for three to four years and 36,000 to 50,000 miles. Vehicle service contracts, often referred to as extended warranties, are a tempting solution for consumers who buy a used car or for those who want to extend the bumper-to-bumper coverage on a new car.

All plans are available for new and used vehicles, except for the Bronze warranty, which is only for used cars. AAA offers a vehicle service contract that combines warranty protections with extra services, such as battery replacement, trip reimbursements, and rental-car coverage. The national auto club told CR that its warranty sales have been increasing, noting that about 30 percent of customers require at least one covered repair. While most manufacturers offer vehicle service contracts after the factory warranty expires, Chevy’s extended limited warranty is an actual extension to the existing factory bumper-to-bumper warranty. It has no deductible coverage, and repairs are performed using new, remanufactured, or refurbished parts.

Since the GMPP plan offers two levels of coverage, you have more choices when it comes to how much coverage you desire. We will also show Acura owners what their options are when it comes to protecting your new, used, or even certified pre-owned Acura vehicles from the high cost of repairs. Reputable third-party providers like Endurance are important when it comes to offering Acura owners extended protection.

We will assume that there were no contract acquisition costs and that costs related to services under extended warranties are evenly distributed over the coverage period. Each month during the coverage period, the company would recognize extended warranty revenues in the amount of 1/24th of $4,800 or $200.

Endurance provides well-rounded coverage for both new and used vehicles that allow you to take your car to any certified mechanic. To remain covered under Acura’s Care service contract, your vehicle must be 2015 or newer and taken to an Acura-approved dealership which limits the customer from receiving service anywhere. Looking into coverage from a reputable third-party provider or “aftermarket service contracts” like the ones from Endurance can offer Acura owners more flexible terms and coverage plans than dealer-sold options do. Acura strives to provide coverage for used vehicles in ways that its competitors do not.

If the mechanic has to hold the car overnight for repairs, CARCHEX pays for your meals and hotel. CARCHEX has a history built on reliable customer service since it was founded in 1999, providing pre-owned vehicle inspections. In 2003, the current CEO, Jason Goldsmith, used CARCHEX to have a 1996 Jaguar XJS convertible inspected when the price seemed too good to be true. The inspection confirmed Goldsmith’s suspicions, and he was so impressed that he bought CARCHEX and expanded the services offered by including an extended car warranty service.

Each plan offers different levels of protection with terms ranging from five to seven years. Extended warranties may reduce financial stress for those who own models from unreliable brands. They’re available through dealerships, auto clubs, and insurance companies (which sometimes call them mechanical breakdown insurance). And the small print truly matters, because aftermarket programs have specific limitations on what repairs are covered and where the work can be done. A. Chevy gives consumers the option of purchasing an extended limited warranty or a protection plan, which is its version of a vehicle service contract.

CARCHEX Car Warranties

And the cars under the Acura name tend to reach higher mileages and owners tend to keep them around longer. In order to determine if Infiniti extended warranty costs are worth it, we looked at the reliability and repair costs of Infiniti cars to see how often Infinitis need repairs and how much car owners have to pay for those repairs. It is also important to consider the types of extended warranties available to Infiniti owners, including dealership plans and plans through third-party companies like CARCHEX. CarMax doesn’t offer free oil changes like most extended warranty plans do.

CarMax considers oils a fluid, which isn’t covered by the MaxCare service plan. A Volvo extended warranty can be purchased at any time, even if your original warranty is still valid. The Volvo dealership refers to their extended limited service contracts as Volvo Increased Protection (VIP) Plans, which are available in four coverage levels up to 6 years / 120,000 miles, whichever comes first. Just as we did not manufacture your car, we cannot call our policies an “extended warranty”, which is why our protection plans are referred to as a vehicle service contract.

That’s why Volvo and third-party providers like CARCHEX offer extended warranties for Volvos. Endurance Warranty plans are honored anywhere at licensed and authorized repair facilities. Even if you relocate to another state, your vehicle will still be covered by us! You get the peace of mind of knowing your auto warranty is honored nationwide. CARCHEX offers multiple vehicle protection options including five car warranty plans.

How is warranty cost calculated?

Warranty expense is the cost that a business expects to or has already incurred for the repair or replacement of goods that it has sold. The total amount of warranty expense is limited by the warranty period that a business typically allows.

Getting hit with unexpected, costly vehicle repairs can derail any budget. CARCHEX provides excellent car warranty choices with varying levels of coverage so you can find an affordable plan and rest easy that your vehicle is in good hands should it need repairs down the road. It’s easier to point out what the Titanium plan does not cover rather than what it does. Parts not included are those covered by the vehicle’s manufacturer’s warranty and recalls, and there’s no coverage for the optional add-ons we mentioned above (CARCHEX can add those to your plan). Other excluded items are components that wear out and must be replaced, like headlamps, windshield wipers and brakes.

Top 3 Cheapest Homeowners Insurance Companies

Posted on 23.09.2020Categories Bookkeeping 101  Leave a comment on Top 3 Cheapest Homeowners Insurance Companies

warehouse insurance cost

Photography is just one of its specialisms, however, as it also covers cycles and caravans. It also provides ‘new for old’ cover, not just cameras but also for drones (as long as you’re using said drone for non-commercial purposes). Based in Guildford, Surrey, Eversure says its team is on hand to answer queries during normal working hours, with policy amendments being able to be made either via phone or email. General liability and commercial property insurance are two of the most important insurance policies for LLCs.

A basic policy should cover losses due to fire, lightning, wind, hail and acts of vandalism. Depending on where you live, you might want to add additional coverage to protect you from earthquakes and other types of damage.

Most policies also cover your liability for any injuries and property damage that you or your family members (including your pets) cause to others. They may not be able to offer a bespoke policy that some specialty business insurers can offer, but they are able to provide the policies that small businesses need.

Who Needs Commercial Property Insurance?

As the nation’s second-largest insurer, Geico carries a variety of liability protection options, from personal to professional coverage. Best financial strength rating of A++, which provides some peace of mind. Geico requires you to max out your auto policy liability limit at $300,000 before buying a Geico umbrella policy. For instance, your auto insurance policy protects you in case of a car accident, while your homeowners policy covers your house, and the belongings in it, against theft or damage. By contrast, umbrella insurance is a single policy that covers most aspects of your financial life – just like an umbrella covers every part of your body in a rainstorm.

You probably have insurance to cover your home and vehicle should an accident happen, but liability coverage on those policies is limited. If you carry a standard auto insurance policy, you might have liability insurance ranging from $100,000–$300,000.

USAA offers umbrella insurance ranging between $1 million and $5 million to those members who already have home and car insurance with the company. USAA umbrella policies are for personal liability only and do not cover any business or professional services. Each USAA liability policy covers you when you travel anywhere in the world, and it extends to all the members of your household.

These include commercial general liability insurance and commercial auto coverage. The Insurance Emporium has two comprehensive base policies, to which you can add elective benefits. Professional policies also feature accidental portfolio damage, props, professional indemnity and business interruption. The Insurance Emporium’s elective benefits include the addition of gadgets and mobile phones, sports and action cameras, waterproof photographic equipment and other useful options.

Commercial Property Insurance Cost

How much does a 1 million dollar business insurance policy cost?

How Much Does Warehouse Insurance Cost? The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small warehouse businesses ranges from $117 to $189 per month based on location, size, payroll, sales and experience.

Your home insurance premium is typically paid monthly, along with your monthly mortgage payment. Infocus offers insurance protection for both photographers and video makers, helping protect your business and enable it to quickly recover from any catastrophes. With its policies underwritten by Hiscox Insurance, there’s the ability to pay in interest-free instalments, while worldwide cover is also offered for photographic equipment. Interestingly, the company says it can also provide PR help if you ever need crisis containment. Making sure applications are quick and easy, there are two levels of off-the-peg insurance policies offered to photographers and videographers, namely Basic and Standard.

Total insurable value is a property insurance term referring to the sum of the full replacement cost value of the insured’s covered property, business income values, and any other insured property. A commercial property policy may also cover loss of income or increase in expenses that results from the property damage. Their business owner’s policies are competitively priced while providing the right mix of property and liability coverage. They also offer specialty business insurance products like Employment Practices liability insurance to protect your business from being sued by a disgruntled employee. Most standard homeowners insurance policies do not protect your property in the event of floods and earthquakes.

If someone sues you, your future earnings are also at stake, as those earnings could be garnished to pay for that lawsuit. If you’re a small business owner, liability insurance is something you don’t want to overlook. If someone gets hurt on your company’s property or one of your employees damages or hurts another, the liability insurance protects your business assets. This is especially important if you have company vehicles or you travel regularly for work. Umbrella insurance is a type of liability insurance, meaning that its job is to protect you against lawsuits.

Umbrella liability insurance is a policy that extends the coverage of underlying liability insurance policies. When the limits on the underlying policies are spent, umbrella insurance often pays the remaining costs up to the umbrella policy’s limit. For example, if a customer’s slip-and-fall ends up costing $250,000 in legal fees and medical bills, and your general liability limit is $150,000, then your umbrella covers the remaining $100,000. General liability insurance is a policy that covers some of the most common business risks, namely third-party injuries, property damage, and reputational harm. If your LLC is accused of causing any of these, your general liability insurance typically pays for the injured party’s medical costs or repairs, or your legal fees if they decide to sue.

So if you live in a state or area prone to these types of events, you may want (or be required to by your lender) to purchase extra insurance coverage. Any camera gear you own – such as a tripod, remote shutter release, lens, or external flash – is automatically covered under your base home insurance policy for theft, fire, vandalism, etc. But if you want to add Extra Coverage for your gear, you’ll need to schedule your equipment separately from your camera.

So any time you run over the liability limits on one of your other insurance policies, your umbrella policy is there to take care of the extra costs. The accent here is on giving photographers value, with Eversure working closely with its underwriters to be able to provide camera insurance policies starting from just a penny shy of £20.

  • As the nation’s second-largest insurer, Geico carries a variety of liability protection options, from personal to professional coverage.

With most auto insurance policies, the maximum amount of liability coverage you can buy is either $300,000 or $500,000 per accident, but damages in a lawsuit can easily add up to millions of dollars. Having an umbrella policy keeps a massive lawsuit from wiping out all your other assets. In addition, an umbrella policy protects you against being sued for damage that other policies don’t cover, such as an accident you cause at work or on vacation. It offers several products, including general liability insurance, professional liability insurance and workers’ compensation insurance. Keeping all of your business insurance policies with the same provider can help ensure complete coverage and also earn you some discounts.

If you cause a major car accident and are sued for $500,000, your $300,000 auto policy coverage won’t protect you completely for that lawsuit. You may still owe $200,000 depending on the outcome of the lawsuit, which means your investments and assets are all at risk.

What Does Commercial Property Insurance NOT Cover?

Priced at £199 and £299 per year respectively, they cover equipment to the value of £5,000 or £10,000, as required. Alternatively, you can create your own bespoke policy by using its website, or by calling its UK team direct to discuss. Note that in many cases, you can’t get an umbrella policy unless you already have high-dollar liability coverage on your auto and homeowners insurance. You can select a range of coverage for your commercial property insurance.

General Liability Insurance Prices

If you’re going to purchase liability coverage, you want to make sure ahead of time that it covers you for every scenario before you sign your name on the dotted line. If your teenager crashes the family car through a fence and into the side of your neighbor’s house, an umbrella insurance policy can pay for any damage beyond the limits of your auto insurance. The policy also covers damage that isn’t included in auto and homeowners policies. LLCs that own or use vehicles for their business need commercial auto insurance in case they or their employees cause an accident while operating a company vehicle. Most states require vehicle owners to purchase liability coverage to pay for other’s property damage and physical injuries.

Warehouse Insurance Policy Information

For instance, some insurers offer coverage for lawsuits involving slander or personal defamation, while other insurers shy away from this coverage. A variety of providers cover your damage if you crash an ATV on vacation, but others exclude this from their policies.

They also offer commercial auto insurance and general liability insurance. If you are a professional, you can also add on errors and omissions insurance easily.

Photoguard is another trade specialist when it comes to protecting your photographic equipment that might not otherwise be covered by your regular household insurance. It also makes the point that if you’re using the camera as a professional photographer, you may not be able to claim on your home insurance. A major advantage with Photoguard is that it has a claims excess of just £50 and can cover you for travel both in the UK and abroad. The Pro policy also extends to covering ‘associates’ – which it classifies as fellow photographers or assistants who work with you – against claims by third parties. Ripe understands that no two photographers are the same – and neither are two bags of kit.

However, business owners may want to add other coverages to increase their protection. Commercial property insurance covers damage to your LLC’s physical assets. These assets may include your building, if it’s owned by the LLC, and your business personal property, such as office equipment, inventory, fixtures, and furniture. If these are damaged by covered events, then your property insurer pays the insured amount minus your deductible. A standard homeowners insurance policy provides coverage for your home and belongings in the event of a “destructive” event, such as wind and hail, theft, or fire.

warehouse insurance cost

General liability coverage pays for costs that follow third-party injuries and damages, including medical bills, repair bills, and settlements or judgments if the LLC is sued after a covered event. A business owners policy (BOP) bundles these coverages for more affordable premiums. Homeowners insurance is a specific type of insurance policy that protects homeowners against losses and damage caused by perils such as fires, storms, or burglary. It also covers legal costs if someone is injured in your home or on your property. Earthquake and flood coverage is typically not included in standard homeowners insurance policies, but you may be able to add on this additional coverage (flood insurance is often required in flood zones).

Along with protecting you for a claim relating to your home, car or boat, this umbrella coverage also protects against personal claims such as libel or slander. In addition to personal liability umbrella insurance, State Farm also has a variety of business liability insurance packages and policies to offer complete coverage for your professional needs.

If your business suffers from a covered loss, you’ll file a claim with your insurance company. The company can pay for the losses so you can either replace, repair or rebuild. The most common types of commercial insurance are property, liability and workers’ compensation. Depending on your business, you may want additional specialized coverages. Their standard business policy is a BOP (Business Owner’s Policy) that covers property damage and general liability.

That’s why it offers bespoke camera insurance that features worldwide coverage, cover against theft from your home or an unattended vehicle, as well as accidental damage both at home and while away. There’s even dedicated consideration given to videographer insurance cover, too, so vloggers and cinematographers alike can tailor-make a policy to suit their specific needs. On top of all that, Ripe also has one of the most intuitive and helpful websites out there – including a special page that prompts you to double-check everything in your kit bag! Coverage starts from just £2.86 per month, and right now there’s 20% off all policies. Best rating of A++, which makes it a smart choice if you want the assurance of a strong liability provider.

Creating a Table of Values from a Linear Equation

Posted on 23.09.2020Categories Bookkeeping 101  Leave a comment on Creating a Table of Values from a Linear Equation

value table

The relational data model contains not only tables, but also relationships between tables. These relationships are defined in the ABAP/4 Dictionary by foreign keys.

If you go to SE11, type in the name of your table and click on “Change”. Click on the name of the field that you want to use a check table for. Now click on the foreign key button (the button that has a key and an arrow).

You can enter values in the foreign key table if there exist a record in check table. Data element − Every Search Help parameter or field by default is assigned a data element that was assigned to it in the source of data (Table or View). This data element name appears in display mode.

An important function of foreign keys is to support data integrity in the relational data model. Foreign key fields may assume only those values allowed by the check table, in other words, values occurring in the primary key of the check table. The ABAP Dictionary allows you to define relationships between tables using foreign keys.

For example if you try to create a record in employee table with Department_ID as ’04’, it will throw an error. A primary key is a field or group of fields that uniquely identify a record in a table.

This brings up a window for the foreign key/check table information. Enter a short text description and the name of the check table, then click on the “Generate proposal” button. Make sure that the “check required” box is checked, select a foreign key field type and cardinality, and then click on the copy button.

Using the function module ‘F4IF_INT_TABLE_VALUE_REQUEST’

If suppose a foreign key links two tables T1 and T2 by assigning fields of table T1 to the primary key fields of table T2. The system proposes the value table as check table when you try to define a foreign key for the field or component. This will not allow entering a Department_ID in the employee table that is not there in the department table.

For this purpose, Foreign key fields assigned to the primary key fields of T2 are included in T1. Table T1, which is the one being checked, is called a foreign key table, and table T2 is called a check table. The terms dependent (foreign key) table and referenced (check) table are also used. If you try to define a foreign key for a field that points to this domain, the value table of the domain is proposed as the check table for the foreign key.

Value table is maintained at the data element level and check table at the dictionary level. The Check Table is the dependent table to which the relationship is defined using foreign keys. A value table only becomes a check table when a foreign key is defined. If you refer to a domain with a value table in a field, but no foreign key was defined at field level, there is no check.

A dependent table is called a foreign key table, and the referenced table is called the check table. Each key field of the check table corresponds to a field in the foreign key table. One of the foreign key fields is designated as the check field for checking the validity of values. The key fields of the check table can serve as input help for the check field.

  • The relational data model contains not only tables, but also relationships between tables.
  • These relationships are defined in the ABAP/4 Dictionary by foreign keys.
  • An important function of foreign keys is to support data integrity in the relational data model.

Creating a Table of Values from a Linear Equation

There is a limit for fields in primary key by the database system. The limit is 16 fields, or 15 if you have to use also the CLIENT (client-specific tables). The system proposes the value table as check table when you try to define a foreign key for this field. When we create a FK relation for a Field, whose domain has been assigned to value table, the system will propose the Value Table as Check table. Value Table is the table attached to a field at the domain level, where the entry to the field can be only from the value table.

Referring to the previous example if you tried to define a check table for the matnr field SAP would propose MARA as the check table. Check table is defined against a field in SE11 if you want the values in that field to be checked against a list of valid values. For e.g. if you are using the field matnr in a table you could define MARA as the check table.

We have seen that it is best to use a function table to describe a function when there are a finite number of inputs for that function. You should now be very comfortable determining when and how to use a function table to describe a function. Also while defining a check table SAP proposes the value table as check table by default.

The check table is the table whose key fields are checked, during maintaining the foreign key relationship. 2)The check table defines the foreign keys and is part of the table definition.

The value table is part of the domain definition. Department_ID becomes the foreign key of employee table and Department table becomes the check table.

What is a value table?

Check Table is for Field level Validation whereas Value table is for Domain Level Validations. Value Table proposes table for check table. The Check Table is the table used by system to check if a data exist or not exist.

Table T1 is called the foreign key table (dependent table) and table T2 is the check table (referenced table). The pair of fields for the two tables must have the same data type and length. One field of the foreign key table therefore corresponds to each key field of the check table. This field is called the foreign key field.A foreign key permits you to assign data records in the foreign key table and check table. One record of the foreign key table uniquely identifies one record of the check table using the entries in the foreign key fields.

difference between check table and valuetable

Primary key fields cannot be NULL and cannot contain duplicate values. The check table is used to check whether the input values are valid and for the input help (F4 help). A function is a rule that assigns a set of inputs to a set of outputs in such a way that each input has a unique output. A function table in math is a table that describes a function by displaying inputs and corresponding outputs in tabular form. Each function table has a rule that describes the relationship between the inputs and the outputs.

SAP ABAP – Foreign Key Relationship Using Check Table

Table T1 is called the foreign key table (dependent table) and table T2 the check table (referenced table). A foreign key links two tables T1 and T2 by assigning fields of table T1 to the primary key fields of table T2. Table T2 is then known as the check table of the foreign key.

Table whose key fields are used to check the foreign key fields (see Foreign Keys). Only entries that are contained in the key fields of the check table can be contained in the foreign key fields. Check Table is the dependent table to which the relationship is defined using the foreign keys. The contents of the check table field are shown in the input help for the referenced field.

How to avoid becoming victim when offered 'free' vacation

Posted on 23.09.2020Categories Bookkeeping 101  Leave a comment on How to avoid becoming victim when offered 'free' vacation

vacation warehouse

As business owners, we are so invested in the day-to-day of our companies, that we forget how important it is to take time off and unplug. Stop stressing, and start making the most out of your time off. At The Vacation Warehouse in Spring TX, we have the perfect place for every taste. Stay updated on Vacation Warehouse – Free Cruise Voucher and find even more events in Spring.

Great veiw of the channel and lots of boats. We do this every few months and except for the missing turtle/fish food dispenser all went well. Although the company points out its A+ rating with the BBB, Napoliello explains that the A+ rating is maintained because the company responds to complaints. The company’s response to complaints doesn’t negate the fact that 1,076 customers have complained to the BBB about dissatisfaction with the company. Jackie isn’t the only one complaining about Silverleaf resorts.

The third way for vacation coverage is to simply shut down the entire organization for a week to two weeks, resulting in forced, mandatory vacation for everyone. Don’t panic at the thought of it.

You can request that particular person every time you need help. The learning curve will be shorter and the time more productive. Americans are traditionally poor at taking paid vacation time.

The Vacation Warehouse

It’s important for the health and morale of the individual employee as well as the organization as a whole. Hotwire, Inc. is not responsible for content on external sites. Hotwire, the Hotwire logo, Hot Fare, Hot Rate, “4-star hotels. 2-star prices.” and TripStarter are either registered trademarks or trademarks of Hotwire, Inc. in the US and/or other countries.

The benefits of that strategy will come back to you tenfold during your busy season when all employees have taken a vacation and they feel valued vs. burnt out. The business you miss during that time will likely come back to you. The second way to handle vacation season is to get temporary coverage. If you have positions like order takers, executive assistants or order pickers, find temporary agencies that specialize in these areas.

and the company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise. Vacation Warehouse is a leisure, travel & tourism company based out of 219 Lincoln Ave, Haverhill, Massachusetts, United States. One word that means so much to so many; yet between the costs and all of the planning, 73% of people will fail to take even one true vacation over the next 36 months. Here at Vacation Warehouse, LLC (VWL) we intend to fix that one client at a time. Copyright © 2019 The Vacation WareHouse, LLC – All Rights Reserved.

Other logos or product and company names mentioned herein may be the property of their respective owners. BBB Business Profiles are provided solely to assist you in exercising your own best judgment. BBB asks third parties who publish complaints, reviews and/or responses on this website to affirm that the information provided is accurate. However, BBB does not verify the accuracy of information provided by third parties, and does not guarantee the accuracy of any information in Business Profiles.

Oh, sure, if that worker doesn’t take a vacation, you won’t have to get coverage for the job, or you won’t have to explain to someone else the most cost-effective way to ship a forklift to a customer. But that worker won’t be as productive as he or she can be if a vacation was on the horizon. That person ay even face burn-out if you don’t provide a break. It doesn’t matter whether you’re an executive or a welder, a CEO or an assistant – everyone needs that break. Happy employees are productive employees, who cheerfully do their work as a team, for the good of the company.

Discover a selection of 55 vacation rentals in Wilson Warehouse / Community House that are perfect for your trip. Whether you’re traveling with friends, family, or even pets, Vrbo vacation homes have the best amenities for hanging out with the people that matter most, including kitchens and WiFi. Prices start at $86 per night, and cabins and houses are popular options for a stay in Wilson Warehouse / Community House. Either way, you’ll find a rental for everyone’s needs. Aaaahhh, that summer vacation is looming!

  • As business owners, we are so invested in the day-to-day of our companies, that we forget how important it is to take time off and unplug.
  • At The Vacation Warehouse in Spring TX, we have the perfect place for every taste.

vacation warehouse

Vacation Warehouse Spring, TX – How Vacations Can Affect Your Stress Levels – Duur: 74 seconden.

The company has a diverse portfolio that includes seven vacation ownership brands. It also includes exchange networks and membership programs, as well as management of other resorts and lodging properties. For more information, please visit If you or your employees or co-workers are not taking a vacation, it’s not saving the boss any headaches. If the boss is you, do encourage people to take their vacation time.

Copyright © 2020 PR Newswire Association LLC. All Rights Reserved. Unkle Monkey, a Warehouse regular was at our event and great. We were with a group and service was great for most but for some people it was a bit slow. Drinks are strong and fair priced. Food is good to better than average.

Spring, TX The Vacation Warehouse – Why Vacations Are Good for Business – Duur: 76 seconden.

The Florida BBB has logged 1,076 complaints against the company. As a matter of policy, BBB does not endorse any product, service or business. BBB Business Profiles generally cover a three-year reporting period. BBB Business Profiles are subject to change at any time. If you choose to do business with this business, please let the business know that you contacted BBB for a BBB Business Profile.

Woman speaks about what happened after timeshare sales presentation

Or will you be spending your summer dealing with other peoples’ vacations? If you’re like most businesses, the work doesn’t stop just because it’s summer. However, every employee needs a vacation.

vacation warehouse

Spring, TX Vacation Warehouse – The Effects of Family Vacations on Family Relationships – Duur: 70 seconden.

Develop a relationship with the agency and/or the actual temporary worker, so that he or she can learn your business. That way, you don’t have to explain what a cantilever rack system is or your order-picking procedure more than once.

Unemployment Disqualifications

Posted on 23.09.2020Categories Bookkeeping 101  Leave a comment on Unemployment Disqualifications

unemployment taxes definition

Eligible workers will receive supplemental payments and extra weeks of unemployment compensation in addition to standard state unemployment benefits. To be eligible for unemployment benefits in the first place, your employer must classify you as an employee, and not an independent contractor. Because independent contractors are technically self-employed, they are not eligible for state unemployment benefits.

Typically, compensation amounts depend on previous wages, the time of year you apply and your income status. For example, the amount you receive may be lower if you work part-time or are self-employed while searching for work and receiving benefits.

Generally speaking, an individual can determine whether they are an independent contractor or an employee by looking at his or her paycheck and tax information. Employees have taxes taken out of their paychecks, including social security and unemployment benefit taxes, while an independent contractors do not. In most cases, when you are laid off, the employer who terminated your position does not directly have to pay for your unemployment benefits; these checks come from the state’s unemployment fund.

When they claim unemployment benefits, you will receive a “Notice of Unemployment Insurance Claim Filed.” The state sends this letter to the employee’s most recent employer. Unemployment benefits are considered taxable income at the federal level, as well as at some state and local levels. When an unemployed worker approved for benefits requests the withholding of taxes, his weekly payment is less than the gross benefit amount. If the amounts withheld were incorrect or not taken out, you must pay the Internal Revenue Service and state and local revenue offices, if applicable, the difference when you file your income tax returns. Each state has individual rules for collecting unemployment, including (potentially) waiting periods to collect benefits and a requirement that the applicant show an active job search.

Tax impact of benefits

If former employees file for unemployment insurance, you will (indirectly) be the one footing the bill. Benefit payments are charged to your employer tax account, which results in increased state tax rates. The more unemployment claims the state approves, the more you will contribute for unemployment taxes. Former employees claiming unemployment must file with their state unemployment office.

Only employees whom you’ve paid FUTA and SUTA taxes for are eligible to receive these benefits. Fired employees can claim unemployment benefits if they were terminated because of financial cutbacks or because they were not a good fit for the job for which they were hired. They can also receive unemployment benefits if the employer had a good reason to fire the employee, such as being late for work several times, but the infractions were relatively minor, unintentional, or isolated. If you received unemployment benefits this year, you can expect to receive a Form 1099-G “Certain Government Payments” that lists the total amount of compensation you received.

Understanding the U.S. Tax Withholding System

If you received unemployment compensation during the year, you should receive Form 1099-G, which is a report of income received from a government source, showing the amount you were paid. Any unemployment compensation received must be included in your income and should be reported in the appropriate sections of your federal and state tax returns. If you fail to report your unemployment benefits as income, it’s unlikely you’re going to end up federal prison for tax evasion.

If you need unemployment benefits and cannot get them because of the employer’s failure to pay unemployment taxes, you might have to turn to other assistance programs. Aid also is available for items such as child care and medical costs.

However, an employer does not get to label an individual an independent contractor arbitrarily or because they choose to do so. If you believe that you have been misclassified, and as a result have been denied unemployment benefits, seek assistance from your state’s department of labor or an employment attorney. Unemployment benefits are considered taxable income, and the unemployment compensation you receive must be reported when you file your federal and state tax returns. Sometimes, the Federal government accidentally overpays a huge amount of money in unemployment benefits. If you were overpaid unemployment, you might have to repay it come tax season.

The IRS considers unemployment compensation to be taxable income—which you must report on your federal tax return. Some states also count unemployment benefits as taxable income. An employee will also receive a W-2 at the end of the year for federal and state tax filing purposes, while an independent contractor receives a 1099.

  • The Federal Unemployment Tax Act requires employers to file IRS Form 940 annually in conjunction with paying this tax.

Understanding the Federal Unemployment Tax Act (FUTA)

Despite this incentive, savvy employers contest only those claims that really are illegitimate. After all, most employees who are out of work count on unemployment benefits to make ends meet while looking for a new job. An employer that fights every claim will quickly get a bad reputation, both with its other employees and with the state agency. By antagonizing employees who are already financially strapped, such employers also breed the kind of resentment that can lead to wrongful termination lawsuits.

However, businesses pay unemployment taxes based on their track record retaining employees, so an employer that regularly lays off workers will face an increased unemployment tax rate. Independent contractors are not eligible to receive unemployment benefits because you do not pay unemployment taxes on their pay.

TaxCaster Calculator

The Federal Unemployment Tax Act requires employers to file IRS Form 940 annually in conjunction with paying this tax. Sometimes, however, employers accidentally or purposely fail to pay unemployment taxes, which has consequences for both the employer and employees. In addition to state unemployment taxes, your employer must also pay an annual federal unemployment tax. The rate for this tax does not vary in accordance with whether or not your employer has laid off employees.

What are unemployment taxes used for?

The Federal Unemployment Tax Act (FUTA) is the original legislation that allows the government to tax businesses with employees for the purpose of collecting revenue that is then allocated to state unemployment agencies and paid to unemployed workers who are eligible to claim unemployment insurance.

Do Canadians Really Pay More Taxes Than Americans?

But the fees and penalties associated with lying on your taxes are significant. And if you get audited (even if all your other finances are clean) the process will be time-consuming and potentially expensive.

Further, furloughed workers who receive back pay for their time away from work will typically have to pay back any unemployment benefits they collected. While many workers who are fired or laid off are eligible to receive unemployment benefits, there are some disqualifying factors that can render a person ineligible for receiving these payments. The exact circumstances in which unemployment payments will be approved or denied are set on a state level, not a national one, so there may be some differences depending on the location of the job loss. In most states, however, an employee will be disqualified from unemployment benefit eligibility if he or she is fired for misconduct, willful behavior, or other justifiable cause.

The federal government uses the money it collects through this tax to help states pay for the administrative costs of running its unemployment insurance program. In this way your employer shares some of the cost of distributing your unemployment check without directly paying your benefits. The U.S. government and individual states set requirements that limit the amount of unemployment benefits a claimant receives.

When it comes to paying taxes, honesty is always the best policy. Your unemployment benefits are taxed like income, and you’ll have to pay those taxes on unemployment during tax season when you file your return.

If you haven’t lost your job completely but your hours have been reduced or you work part-time, you may be eligible for unemployment insurance but you won’t receive the maximum amount. This means your state borrowed money from the federal government to cover unemployment benefits, and the state hasn’t paid back the loan after two years. The credit reduction reduces the FUTA tax credit for all employers in the applicable states.

Similarly, an individual who is receiving back-owed vacation, workers’ compensation or bonus pay may see a reduced benefit amount. Expanded unemployment benefits are currently available for laid-off employees and self-employed workers due to the coronavirus pandemic.

Words that rhyme with true

Posted on 23.09.2020Categories Bookkeeping 101  Leave a comment on Words that rhyme with true

true account definition

This is especially the case if you disagree about something that one of you passionately believes in. It’s times like these when a person shows their true colors. Having supportive friends can help us get through the hard times.

If you’re feeling lonely because you haven’t been able to build a true friendship, talk to a therapy professional to learn what it takes to build a real friendship between true friends. True friends are the ones that are there for you unconditionally. A true friend is loyal and is always your friend through life’s ups and downs.

She even took it so far that a few friends of mine were going to fight her, but I told them not to cause she ain’t worth the time nor effort. Eventually, it all stopped but I had her in my Tech class.

Well, anyway I new her since about Kindergarten and I was always there for her when she needed it. Up until about Elementary School she changed and started to become dirty minded saying all these kinds of nasty stuff that were very inappropriate. By the time we hit Middle School she completely changed. She started showing of her body and wearing tight and short clothes. She decided it was alright to go and talk smack out the side of her face about me and my friends to the point were it turned into bullying.

You may also come to recognize that some differences are able to support you in some areas of life while you may have another friend that you rely on for support in another area of your life. Expanding the friendships that make up your support system can help ensure that your needs are adequately being met. No friend is perfect, and no friend will be able to be everything to you. Even true friends will sometimes disappoint us. What matters most is how they respond to your feelings and the patterns they establish.

So she has the guts to come to me about a few months into school and tell me how we don’t talk anymore. You talked mad shit about me and my friends non-stop. Don’t expect a special invitation with your name on it saying we friends again. SORRY. It took me a while to understand that she was fake and had no interest in me anymore. It just bothers me that I wasted 7 years of my life being friends with her when I could have been friends with someone else and I bet that friendship would have lasted way longer than what me and her had.

What is the meaning of true true?

“That is true.” A statement of agreement. Person A: Having a million dollars would be cool to have right now. Person B: True that.

While they may give you advice you don’t want to hear from time-to-time, a true friend will never lead you purposely down the wrong road. A true friend will always encourage you to do the right thing. True friendships are built on being in a friendship where you never have to doubt your friend’s loyalty. A good person and true friend would never do anything to intentionally go against your best interest. The definition of a true friend is someone who has your back, no matter what.

As a result, some people never have a true best friend to share their lives with. If you’re feeling lonely about losing a true friend or wondering how to find your best friend — talk to a licensed therapy professional. Do they abandon you when you need them most? If so, maybe it’s time to find a new definition of a true friend. Here are some of the things to look for when you choose the people you’ll trust with your friendship.

A true friend will always have your best interest at heart. They will never purposely lead you into choices or decisions that aren’t good for you.

In fact, different outlooks can help expand our horizons. Still, a true friend will accept you and even find beauty in your quirks and imperfections. There is a general procedure, the substitution rule, that allows additional tautologies to be constructed from a given tautology (Kleene 1967 sec. 3). Suppose that S is a tautology and for each propositional variable A in S a fixed sentence SA is chosen. Then the sentence obtained by replacing each variable A in S with the corresponding sentence SA is also a tautology.

To this day she tries to talk to me like were friends yet she knows were not. It took me so long to see her true colors because I didn’t want to admit that she was fake, but people like to use me because I’m a nice person. Only until I hit my breaking point do they really know how angry and sassy I can get. The real test of a friendship happens when you and your friend actually disagree on something.

If the disappointment you are experiencing in a friendship has become consistent, it may be time to redefine your definition of a true friend. A bad friend is the opposite of a true friend.

As an efficient procedure, however, truth tables are constrained by the fact that the number of valuations that must be checked increases as 2k, where k is the number of variables in the formula. This method for verifying tautologies is an effective procedure, which means that given unlimited computational resources it can always be used to mechanistically determine whether a sentence is a tautology. This means, in particular, the set of tautologies over a fixed finite or countable alphabet is a decidable set. Others have trouble forming a true friendship so they are friendless for this reason.

A key property of tautologies in propositional logic is that an effective method exists for testing whether a given formula is always satisfied (or, equivalently, whether its negation is unsatisfiable). Proof systems are also required for the study of intuitionistic propositional logic, in which the method of truth tables cannot be employed because the law of the excluded middle is not assumed. Much like our personal styles, we all may have different needs and desires when coming to friendship.

For most people, true friends often feel more like family than friends. In addition to the qualities shared by all true friends, you may want a friend who shares your interests or goals. Or, you might want to spend time with people who are different from you in ways that challenge you to grow as a person.

  • These sentences may contain quantifiers, unlike sentences of propositional logic.
  • The fundamental definition of a tautology is in the context of propositional logic.

What is the meaning of true that?

Definition of true story. : an account of something that really happened.

If your current friends let you down, redefining true friendship can open the door to a rich, rewarding relationship. They’re honest with you when it matters most. They never try to deceive you to make themselves seem stronger, more successful, or better than they really are. A true friend goes beyond the surface, any true friendship requires some level of vulnerability. When a friend opens up to you and shares their struggles and disappointments, it is a testament to the trust and value they place in you.

The fundamental definition of a tautology is in the context of propositional logic. The definition can be extended, however, to sentences in first-order logic (see Enderton (2002, p. 114) and Kleene (1967 secs. 17–18)). These sentences may contain quantifiers, unlike sentences of propositional logic. In the context of propositional logic, these two terms coincide. During the 1930s, the formalization of the semantics of propositional logic in terms of truth assignments was developed.

Bad friends are notorious for backstabbing, telling your secrets, and sometimes even worse. If you find yourself in a friendship situation that makes you feel uncomfortable, keep in mind that true friends won’t mind talking it out with you. A sure sign that your “true friend” is actually a frenemy is if they refuse to address your concerns when they come up. “A true friend is hard to find.” This is one of the most popular friendship quotes of all time. The reason this quote is widely popular is because many people find it to be true.

true account definition

synonym study for true

Have the disappointments you are experiencing in your friendship become habits? A true friend cares about you and is able to have concern and respect for your thoughts and emotions even when they may not agree.

Having a friend that shows you that they trust you with their authentic self is a good indicator that you can do the same with them. I read a lot of people’s comments and I have found that I share similar experiences with them.

The term tautology began to be applied to those propositional formulas that are true regardless of the truth or falsity of their propositional variables. Some early books on logic (such as Symbolic Logic by C. I. Lewis and Langford, 1932) used the term for any proposition (in any formal logic) that is universally valid. The definition of tautology can be extended to sentences in predicate logic, which may contain quantifiers, unlike sentences of propositional logic. In propositional logic, there is no distinction between a tautology and a logically valid formula.

true that

The set of such formulas is a proper subset of the set of logically valid sentences of predicate logic (which are the sentences that are true in every model). A formula of propositional logic is a tautology if the formula itself is always true regardless of which valuation is used for the propositional variables. Similarly, if S is a tautology then S is tautologically implied by every formula. Tautologies are a key concept in propositional logic, where a tautology is defined as a propositional formula that is true under any possible Boolean valuation of its propositional variables.

There are 8 possible valuations for the propositional variables A, B, C, represented by the first three columns of the following table. The remaining columns show the truth of subformulas of the formula above, culminating in a column showing the truth value of the original formula under each valuation. When compared to a true friend, a bad friend is completely the opposite.

verb (used with object), trued, tru·ing or true·ing.

While a true friend is considerate of your feelings, a bad friend will brush you off or belittle you when you disagree with them. A bad friend will also not value your time, opinion, and may even be argumentative. In comparison to a true friend, a bad friend never seems to have your back and they only seem to be happy when you’re at your worst. A true friend is someone you can rely on regardless of the circumstances.

A true friend, because they love you, will stand by to help overcome obstacles. That could mean giving a shoulder to cry on, listening to our problems, or finding ways to cheer us up. Those small gestures can mean a lot especially when times get tough. A truly supportive friend will love you for the person you are, flaws and all. That doesn’t mean friends have to agree with each other all of the time.