Author: Luca

Business credit disputes are situations where a creditor or a credit bureau reports inaccurate or… When starting a business, it is important to have a clear understanding of your goals. One of the most important steps for any startup is to validate its business idea and test its… A common example is a 2% discount… Continue reading Sales Discounts, Returns and Allowances: All You Need To Know

First, let’s assume that a corporation issued a 9% $100,000 bond when the market interest rate was also 9% and therefore the bond sold for its face value of $100,000. An existing bond’s market value will decrease when the market interest rates increase.The reason is that an existing bond’s fixed interest payments are smaller than… Continue reading The heart of the internet

Utilizing contra accounts in financial accounting has several significant advantages that enhance financial transparency and enable more effective financial management. To put it another way, accumulated depreciation is the total amount of an asset’s cost that has been allocated as depreciation expense since the asset was put into use. The net of the asset and… Continue reading What Are Contra-Assets: Understanding Their Role in Bookkeeping

This shall give us a deeper understanding of the process and its intricacies. You finish the website and send your final invoice to your client, but after months of chasing after them, you decide that it is unlikely you’ll ever get paid, so you want to write it off as bad debt. Let’s say you… Continue reading Direct write-off method Definition Financial Accounting I Key Term