In other words, the investor will receive interest payments from a premium-priced bond that are greater than could be found in the current market environment. Bond prices are worth watching from day to day as a useful indicator of the direction of interest rates and, more generally, future economic activity.
But as you can see in Figure 1, each Treasury bond has a different yield, and the longer the maturity of the bond, the higher the yield. When inflation expectations rise, interest rates ri […]
To import the data, you have to update the Dancing Numbers file and then map the fields and import it. Depending on the payment method, one may also want to record supplementary information, like the check number. Here’s an example of how your journal entries may look. Depending on the payment method, you may also want to record additional information, like the check number. Learn financial modeling and valuation in Excel the easy way, with step-by-step training. A retainer fee is an upfr […]
For example, Greece and Slovakia have a lower tax on dividend income for shareholders, while dividend gains are tax-exempt in Hong Kong. For instance, in the case of low payments, they can instead sell some shares to get the necessary cash they need. In either case, the combination of the value of an investment in the company and the cash they hold will remain the same. Miller and Modigliani thus conclude that dividends are irrelevant, and investors shouldn’t care about the firm’s d […]
The chart is usually sorted in order by account number, to ease the task of locating specific accounts. The accounts are usually numeric, but can also be alphabetic or alphanumeric. Asset accounts represent the different types of economic resources owned or controlled by an entity. Common examples of asset accounts include cash in hand, cash in bank, receivables, inventory, prepaid expenses, land, structures, equipment, patents, copyrights, licenses, etc. Goodwill is different from other asset […]
Thedirect methodadds up all of the various types of cash payments and receipts, including cash paid to suppliers, cash receipts from customers, and cash paid out in salaries. This method of CFS is easier for very small businesses that use the cash basis accounting method. These figures can also be calculated by using the beginning and ending balances of a variety of asset and liability accounts and examining the net decrease or increase in the accounts. Each section of the statement of cash flo […]
This particular Cloud-based software can be used to perform accounting tasks such as handling credit card payments and establishing individual partner accounts. It can also be used to send invoices, perform automatic debit and credit, create financial reports and manage receipts as well You can use this software at no cost for 30 days during a trial period. After that period elapses, it requires purchase at an affordable price that starts at $15. FreshBooks brings 21st century technology to par […]
Therefore, if the transaction is challenged by a stockholder in litigation, the transaction will be subject to a higher level of judicial scrutiny that is applicable to conflicted transactions. In Delaware, this higher standard is called the “entire fairness” standard of review. Under “entire fairness,” the defendants must demonstrate that the transaction is entirely fair to the common stockholders – in both process as well as price. A buyer typically will not commit to […]
Products with a cost of $35,000 are completed and transferred from the Packaging department to the finished goods warehouse. A local hospital has 60 nurses working on a part-time basis. On average, each nurse works two-thirds of a full load. For this example, that means $130,000 in completed widgets, with $10,000 in units that are not yet completed. Although we don’t track production costs for each desk individually, we do use a process costing system that assigns costs to each batch of d […]
In 1999, the FCC relaxed its ownership rules and allowed one company to own two stations in the same market starting in 2001. This development brought the Sinclair-Glencairn arrangement to light for the first time. At the time, Glencairn was getting ready to buy Sullivan-owned KOKH-TV in Oklahoma City, Oklahoma, where Sinclair already owned KOCB . When the FCC relaxed its rules, Sinclair simply replaced Glencairn as the buyer for KOKH. Glencairn then announced plans to sell (more…) […]
Producing financial statements that conform with GAAP accounting principles can help you make better financial decisions and prepare your company for long-term success. The standards are known collectively as Generally Accepted Accounting Principles—or GAAP. If a financial statement is not prepared using GAAP, investors should be cautious. Without GAAP, comparing financial statements of different companies would be extremely difficult, even within the same industry, making an apples-to-apples c […]
