A contingent liability is aliabilitythat may occur depending on the outcome of an uncertain future event. Contingent liabilities are recorded if the contingency is likely and the amount of the liability can be reasonably estimated. The liability may be disclosed in a footnote on the financial state...
ERM, therefore, can work to minimize firm-wide risk as well as identify unique firm-wide opportunities. Communicating and coordinating between different business units are key for ERM to succeed, since the risk decision coming from top management may seem at odds with local assessments on the gro...
Business entity categories refer to the type or structure of a business, not what it does. How it's structured affects how taxes are paid and how liabilities are determined. Business entities are created at the state level, often by filing documents with a state agency such as the secretary...
4 types of enterprise There are many types of businesses in the US that qualify as enterprises. Here are the four most common formats: 1. Sole proprietorship A sole proprietorship is a business owned and operated by a single individual. The owner benefits from all profits but bears unlimited ...
The types of financial statements maintained by businesses and entities are many with the transactions recorded in different forms. These enable information readers to understand how fruitful the performance of a firm has been over a period. Given the revelations the figures make, the management deter...
Series LLCs are business entities that designate debts, obligations, and rights to smaller cells, which are called series. This can include: Members Managers Assets Interests. Delaware was the first state to offer series LLC formation, and currently they are only available in: Nevada Iowa Illinois...
AI can run through thousands, even millions, of tasks repeatedly — improving its performance in a short amount of time. However, there are multiple kinds of AI, each with its capabilities and limitations. What are the four types of artificial intelligence?
What are the 3 types of customer due diligence? The three types of Customer Due Diligence (CDD) are: Simplified CDD, which applies to low-risk customers Standard CDD, which involves basic identity verification Enhanced CDD, which is conducted for high-risk customers and involves in-depth identit...
The Sarbanes-Oxley Act of 2002 (SOX) was passed by the United States Congress to protect the public from fraudulent or erroneous practices by corporations or other business entities. The law is named after Paul Sarbanes and Michael Oxley, the two congressmen that drafted it. The legislation set...
What are the Different Types of Accounts Payable? Accounts payable can be categorized into trade payables, non-trade payables, and taxes payable. Trade payables refer to payments on goods or services, and non-trade payables refer to business expenses that don’t directly affect operations (e.g....