accordingtotheminimumleasethelessor'sinternalrateof discountpaymentvalueis2million100thousandyuan,the initialdirectcostsincurred50thousandyuan.Atthe beginningofthelease,therecordedvalueoftheleasedassets ofthemarinecompanyandtheunrecognizedfinancingcharges are(a). A.210yuanand450thousandyuan,B.205yuanand500thousand...
a financing transaction, the fair value of the price shall be discounted by setting a discounted rate for all future revenues and later determined. The setting discount rate can be clearly determined according to the following amount: (1) a common interest rate for the issuing of similar ...
For deferred revenues and deferred expenses, cash was received or paid at some point in the past. For accruals, cash will be received or paid in a future accounting period. At the time of the adjusting entry, there is no cash being received or paid. 7. Earnings per share = Net income...
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How do you expense bond legal fees in accounting? What is a capital expense in accounting? How do you expense prepaid insurance in accounting? Why is debt financing tax deductible? Why doesn't buying inventory affect the income statement in accounting?
This liability account could have the title Unearned Revenues or Deferred Legal Fees. As the legal services are performed (earned), the law firm will reduce the liability account and will report the amount as revenues. Installment Loans Payable Installment loans are loans that require a series of...
Deferred Revenue Deferred revenuerefers to funds that are collected in advance of being earned. For example, a legal firm might receive an advance payment for a case it will be handling for the next six months. Deferred revenue is a liability because it represents a firm’s obligation. Recogni...
Real estate assets are reported at historical cost, depreciated over their useful lives, and reviewed for impairment. The mortgage is reported as a liability, net of any unamortized deferred financing costs in accordance with ASC 835. Interest rate caps and swaps are reported at their fair value...
In this situation, deferred taxes would be recognized in the acquired company’s financial statements for the book-to-tax basis differences that result from the transaction. The initial deferred tax balances resulting from the transaction would be recorded in equity. See TX 14.6 for further ...
the accounting equation can’t tell investors how well a company is performing. Investors must interpret the numbers and decide for themselves whether the company has too many or too few liabilities, not enough assets, or perhaps too many assets, or whether its financing is sufficient to ensure...