Bookkeeping

This practice varies from the accounting procedures used by the issuer and the recommendation found in official pronouncements. Therefore, bonds can be purchased to invest idle cash on a short-term basis, to make a long-term investment in another company, or to accumulate funds for future expansion plans. At the end of your fifth year of payments, the monthly payment figure … [Read more...] about What Exactly Are Bonds and How Do They Work?

Because the extra compounding period is included, the EAY will be higher than the BEY. You don’t have to hold onto your bond until it matures, but the timing does matter. If you sell a bond when interest rates are lower than they were when you purchased it, you may be able to make a profit. We believe asset turnover ratio definition everyone should be able to make financial … [Read more...] about Bond Yield: What It Is, Why It Matters, and How It’s Calculated

However, non-operating income does not always come from non-operating assets. It may also include gains from foreign exchanges or other forms of peripheral income such as a one-time gain on investment securities. Non-operating assets what is a suspense account may also generate liabilities for the company holding them. For example, a company holding onto unused land will have … [Read more...] about What is operating revenue? Definition, formula & real-world examples

Not all money flowing into your business counts as revenue, and there are different types of revenue. A crucial element of running a company successfully is understanding the different types of revenue. Different factors such as total revenue, revenue sources, and profit margin, among others, contribute. But only the tuition from the primary service provided to its … [Read more...] about Resources Whats the difference between operating and non-operating revenue?

The main reason to build interest income is the same reason we like to receive any kind of income — it gives you more money, which you can use for whatever purpose you please. However, this goes a little deeper than just having some spare cash to buy a new car or a pair of jeans. Working for a paycheck might be the most accessible way for the average person to earn money, but … [Read more...] about Interest income definition