EFT Meaning: Electronic Funds Transfers Explained
All types of EFT are fast and reliable and don’t require much work on either end of the transaction. This means EFT is a cost-effective solution, so businesses save money. The low-effort aspect is a financial benefit when it comes to time spent. Personnel interaction is needed for these tasks, which means less gets done […]
Cash and Cash Equivalents CCE: Definition, Types, and Examples
Cash and cash equivalents help companies with their working capital needs since these liquid assets are used to pay off current liabilities, which are short-term debts and bills. Yes, restricted cash is included in cash flow statements, but it is typically disclosed separately. Its classification depends on whether it pertains to operating, investing, or financing […]
Presentation of restricted cash in the statement of cash flows
This example highlights how restricted cash works in the context of an escrow during a property transaction. The money in the escrow account is restricted because it’s set aside for a specific purpose and can’t be used by either party until certain conditions are met. The money can be transferred to a general cash account […]
7 Leading Nonprofit Bookkeeping Service Providers 2024
Managing donor information can feel like an overwhelming task, but with a nonprofit bookkeeping virtual assistant, it doesn’t have to be. A study from the National Philanthropic Trust notes the U.S. clocked $484 billion in charitable giving last year, emphasizing the importance of proactive communication. With help from affordable nonprofit bookkeeping virtual assistants, managing financial […]
Debt Service Coverage Ratio DSCR
There is no universal standard for DSCR; however, most lenders want to see at least a 1.25 or 1.50. We believe everyone should be able to make financial decisions with confidence. For example, if a company has a DSCR of 0.5, then it is able to cover only 50% of its total debt commitments. There […]
Debt to Asset Ratio Formula Example Analysis Calculation Explanation
While it has its limitations, it can be very useful as long as it is used critically as part of a broader analysis. For example, it is sometimes the case that a company can generate more profit in the medium term if it accepts reduced revenues in the short term. You see this for instance […]
Understanding Nonmonetary Assets vs Monetary Assets
The cash value of monetary assets remains the same in absolute value and only changes in relative terms due to changes in the time value of money. The cash value of monetary assets remains constant and fixed and is not affected by market forces. Another difference between monetary and non-monetary assets is how the assets […]
Understanding Nonmonetary Assets vs Monetary Assets
The cash value of monetary assets remains the same in absolute value and only changes in relative terms due to changes in the time value of money. The cash value of monetary assets remains constant and fixed and is not affected by market forces. Another difference between monetary and non-monetary assets is how the assets […]
Examples of Non-Monetary Assets
Assets that are not used in the merchandising or production process including assets that are held for resale are not included in this category. It means that if terms of the preference shares lead to the shares classified as equity instrument, then they are non-monetary. A right to receive or obligation to deliver a fixed […]
Examples of Non-Monetary Assets
Assets that are not used in the merchandising or production process including assets that are held for resale are not included in this category. It means that if terms of the preference shares lead to the shares classified as equity instrument, then they are non-monetary. A right to receive or obligation to deliver a fixed […]
