ContentCreating Valuations Amid UncertaintyExamples of Summary Appraisal in a sentenceAppraisal Purpose and CriteriaExample Appraisal Report (important things to look for)Review the Assumptions and Limiting Conditions: A restricted appraisal report is an appraisal report that may only be used in situations where there are no intended users in addition to the client. It is also intended for situations in which a minimal disclosure of the support and rationale for the appraiser's opinions and conclusions is appropriate. It is usually less expensive and is definitely less detailed. This type of report is sometimes appropriate for uses such as portfolio monitoring, but can be used in other situations as well. However, it would not be sufficient enough for underwriting purposes. Kelly looks into appraisal reports to see what options she has. What is…

ContentThe Accounting EquationWhat is the purpose of the accounting equation?Assets CalculationDouble Entry & T AccountsAssets = Liabilities + EquityCost of Goods Sold (COGS) Treasury transactions and cancellations are recorded in retained earnings and paid-in-capital. Equity is named Owner’s Equity, Shareholders’ Equity, or Stockholders’ Equity on the balance sheet. Business owners with a sole proprietorship and small businesses that aren’t corporations use Owner’s Equity. Corporations with shareholders may call Equity either Shareholders’ Equity or Stockholders’ Equity. The accounting equation is fundamental to the double-entry accounting system and, put simply, it states that the assets of a business must equal its liabilities & owner’s equity. In order to understand the accounting equation, you have to understand its three parts. Good examples of assets are cash, land, buildings, equipment, and supplies. Money that…

ContentTax ServicesBuilding the Business’s Brand OnlineExpertise in your industry verticalAccounting for startupsModern Accounting ServicesBest Accounting Software for Startups (Free & Paid)Importance of Good Accounting for Startups If price is a major concern, you may be able to negotiate a flat fee to keep the accountant’s services on retainer. Even within the specialized world of Startup CFOs and accounting firms, you have a lot of choices. Expertise, resumes, and technical capability may be similar, so find accounting firms for startups someone that you feel comfortable with. As a startup founder, you have plenty of responsibilities to fulfill, especially early on. If all you need for now is someone to track your monthly financials, paying CPA rates for bookkeeping duties may not be cost-effective for you. The adage “Cash is King” could…

ContentCalculation Examples of Retained EarningsHow do you find the cost of retained earnings?What are retained earnings and what do they mean for your balance sheet?What Is the Retained Earnings Formula and Calculation?How Do You Calculate Retained Earnings on the Balance Sheet? The main difference between retained earnings and profits is that retained earnings subtract dividend payments from a company’s profit, whereas profits do not. Where profits may indicate that a company has positive net income, retained earnings may show that a company has a net loss depending on the amount of dividends it paid out to shareholders. Retained earnings are the total earning of a business including beginning retained earnings and net income minus the cash and stock dividends. It’s one metric used by businesses to understand how successful they…

ContentReceivables ManagementAccounts receivableEstimating Allowance for Uncollectible Accounts (Impairment)Cost AccountingNRV and the lower of cost or market methodHow to Determine Cash Realizable Value in Accounting This method provide a better matching of revenues and expenses than the direct write-off method of accounting for uncollectible accounts. Several alternative procedures exist for estimating uncollectible accounts. Two of the largest assets that a company may list on a balance sheet are accounts receivable and inventory.The holder of a note adjusts for accrued interest by debiting Interest Receivable and crediting Interest Revenue.Whenever a pre-determined amount of credit sales have been made.During 20X7, Ray’s wrote off $6,000 in uncollectible accounts.FASB had to set a standard rule as to whether the current rate or the historical rate was appropriate for reporting foreign currency balances.All of these steps…