Explaining the Cash Coverage Ratio With Examples
Before embarking on a new initiative, conduct financial analysis that includes the cash coverage ratio. The computation, an example, as well as the …
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Tax Fraud on the Rise: New IRS Technology Makes It Harder to Cheat
Are more people cheating on their taxes or has the Internal Revenue Service made it harder to do so with new technology catching illegal deductions or …
Continue ReadingWhy Raising Taxes Will Run America Into Bankruptcy: Our Economy Needs Rich People and Profitable Businesses to Prosper
The headlines trumpet the not-surprising news, “Obama Wants $600 Billion in New Taxes.” Old-school economic policies dictate raising taxes …
Continue ReadingIraq Suing USA for $6.6 Billion: It's All an Accounting Mistake!
The Iraqis are saying that the United States owes them $6.6 billion. But I say hold on a minute, and let’s do some investigating and some basic …
Continue ReadingPension Reform: Transforming an Antiquated System to Create Taxpayer Savings While Protecting Pensioners
Did you know the average congressman retires on a pension plan that is two to three times more lucrative than those of private sector employees? In …
Continue ReadingExamples of Deductible Business Casualty Loss: Providing Calculations and Accounting Entries
Surveys indicate that most business owners aren’t aware of the tax deductible benefits available to them, including tax deductions for business …
Continue ReadingHow to Perform Cost Volume Profit Analysis
Cost volume profit analysis is a managerial cost accounting technique that determines how changes in sales volume, cost, and prices changes profits. …
Continue ReadingThe Advantages and Disadvantages of Using Cash Budgeting
A cash budget reflects the facts: how much cash you plan to take in and where it will go. It is an important tool that should be used in making …
Continue ReadingExplaining Lower of Cost or Market (LCM) with Examples
Lower of Cost or Market (LCM) is the approach of valuing and reporting inventory at historical costs or current value, whichever is lower. It is a …
Continue ReadingFactors Affecting Capital Investment Decisions: Take Everything Into Consideration
Capital investment decisions are made for a number of reasons. Capital equipment suffers wear and tear and must be replaced, or new technology must be …
Continue ReadingImplementing Cash Handling Internal Control Procedures and Policies
Are you confident that your cash is adequately protected? You may think that insurance coverage is enough to cover your losses against theft or …
Continue ReadingWhat Is a Cost Object: 3 Estimators for Translating Raw Data
A cost object is any tangible input for manufacture of products or providing a service. It may be a specific product, service, project, customer, or …
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