Search results
Results from the WOW.Com Content Network
In finance, bad debt, occasionally called uncollectible accounts expense, is a monetary amount owed to a creditor that is unlikely to be paid and for which the creditor is not willing to take action to collect for various reasons, often due to the debtor not having the money to pay, for example due to a company going into liquidation or insolvency.
Fixed Expenses vs. Variable Expenses: Quick Take. If you want to make sure you have enough money for necessities and unplanned expenses, you must create a budget. For that, learning the difference ...
Factoring is commonly referred to as accounts receivable factoring, invoice factoring, and sometimes accounts receivable financing. Accounts receivable financing is a term more accurately used to describe a form of asset based lending against accounts receivable. The Commercial Finance Association is the leading trade association of the asset ...
Good debt is preferable because it builds value, but there are cases where bad debt is the best choice. For instance, using a loan to buy a reliable car to get you to and from work is a good use ...
Examples are accumulated depreciation against equipment, and allowance for bad debts (also known as allowance for doubtful accounts) against accounts receivable. [33] United States GAAP utilizes the term contra for specific accounts only and does not recognize the second half of a transaction as a contra, thus the term is restricted to accounts ...
For premium support please call: 800-290-4726 more ways to reach us
Conservatism plays an important role in a number of accounting rules, including the allowance for doubtful debts [3] and the lower of cost or market rule, [4] which states that one should record inventory at the lower of either its acquisition cost or its current market value.
Now, imagine you qualify for a debt consolidation loan with a 12 percent fixed interest rate and a four-year repayment term. Your monthly payment amount would be around $263, and your total ...