Example of Prepaid Expenses A common prepaid expense is the six-month insurance premium that is paid in advance for insurance coverage on a company’s vehicles. The amount paid is often recorded in the current asset account Prepaid Insurance. If the company issues monthly financial statements, its...
Even with an accountable plan, there are some things to look out for. For instance, if the employer has an accountable plan, but the employee fails to properly substantiate the expenses within a reasonable time, or the employee fails to return excess advance payments, then any reimbursements co...
Chapter 13, known as “reorganization bankruptcy,” lets you create a repayment plan to repay debts over three to five years. Unlike Chapter 7, this type of bankruptcy allows you to keep your assets while making monthly payments to creditors via a trustee. Once the repayment plan is completed...
Two alternatives to the HSA are flexible spending accounts (FSAs) andhealth reimbursement arrangements (HRAs). These plans generally cover the same expenses, though there are some exceptions, such as certain health insurance premiums covered by the HSA. The FSA works like an HSA in that ...
With that being said, here are some of the most common operating expenses businesses incur. 1.Maintenance and Repair Operating Expenses.These are expenses made on a daily basis in order to keep assets working efficiently. They depend largely on the type of industry the business is a part of....
Paying a contractor can be tricky. Let’s go through the whole process. Some payment terms are prepayment, payment upon delivery, net and end of month. Learn mor
You receive all of the money upfront and pay it back over time with interest in fixed monthly payments. These loans are ideal for situations in which you need a sum of cash at one time, such as paying off a big debt or paying for one large single expense, like a kitchen renovation ...
Another factor in the premium price is theexpiration date. Just like with that carton of milk in the refrigerator, the expiration date indicates the day the option contract must be used. The underlying asset will influence the use-by date and some options will expire daily, weekly, monthly, ...
Simplify budgeting:Recurring payments can make it easy to predict monthly expenses, especially with fixed payments. This predictability aids in creating a more accurate, effectivepersonal budget. Help improve financial planning:Since the amounts and dates of payments are often known in advance, recurrin...
While annuity buyers typically choose to receive payments monthly, you may choose quarterly or even yearly instead. In today’s immediate annuity marketplace, there are a number of ways the annuity can be customized to suit your specific life situation and concerns. In exchange for the guarantee...