What is a liability account? Financial Statements Business owners, creditors, and investors readily rely on financial statements to understand how the company performs and how it handles its operations. Statements such as the balance sheet and income statement guide them to strategize and implement the...
A control account exists for both creditors and debtors and is used to ensure that there are no errors in the ledgers (that any sub-ledgers match up with the general ledger). The purchase ledger control account should be reconciled each month end making sure it reflects the same balance at...
Accounts Payable is sometimes referred to as acurrent liability account. This is simply in reference to the fact that the account represents the company’s short-term liabilities. Why Is Accounts Payable Important? Accounts payable is a liability that represents money owed to creditors. It is incl...
Accounts Payable is a very important aspect of Vendor Management for businesses. Read this blog to understand this concept in detail.
A joint bank account can be beneficial for couples. Learn what a joint account is with this article from Better Money Habits.
Credit history.Creditors also review your credit history. If you have no credit history or alow credit score, they might start you out with a lower limit. They want to see how you handle this lower credit limit before increasing how much you can spend. ...
So what is a disadvantage of being a sole proprietor? There are several to consider when weighing your decision. Unlimited liability One of the main risks of a sole proprietorship is liability for debts. If you can’t repay creditors, your own assets and home could be at risk. You also ...
Equity securities do entitle the holder to some control of the company on apro rata basis, viavoting rights. In the case of bankruptcy, they share only inresidual interestafter all obligations have been paid out to creditors. They are sometimes offered aspayment-in-kind. ...
Spendthrift:Beneficiaries' access to assets is limited with this type of trust. Money and assets are released to them incrementally. The trustee is granted discretion as to when to transfer inheritances to them and how much. This safeguards against the beneficiaries' creditors and/or their bad sp...
The credit shelter trust has advantages beyond estate tax planning. A CST protects the assets of a surviving spouse and provides flexibility in distribution. Asset Protection The CST protects the assets of a surviving spouse. For example, a surviving spouse’s assets are susceptible to creditors an...