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Prepaid Expenses Examples, Accounting for a Prepaid Expense

Consider a company that pays $90,000 upfront for a three-year software subscription. At the end of the first year, $30,000 remains in the prepaid asset account as a current asset, while the remaining $60,000 is classified as a non-current asset. Proper classification allows stakeholders to assess long-term financial commitments with...

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Understanding the Cash Realizable Value Formula for Procurement: A Comprehensive Guide

These factors are collectability, economic conditions, obsolescence, and market demand. Our AI-powered Anomaly Management Software helps accounting professionals identify and rectify potential ‘Errors and Omissions’ throughout the financial period so that teams can avoid the month-end rush. The AI algorithm continuously learns through a feedback loop which, in turn, reduces...

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Going Concern Meaning, Assumption, Accounting Principle

By shedding excess costs and reallocating resources effectively, management can position the business for long-term success. On the other hand, if a company is considered a going concern, it signals trust in the company’s longevity and future prospects. This perception allows businesses to offer greater credit sales than they would...

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What is time and a half pay + how to calculate it

If you work Saturdays, Sundays, or holidays, you're not legallyentitled to any special pay. Despite the lack of any legal requirement, holiday pay is commonly offered by most employers, to incentivize workers and keepthem happy. If you receive an hourly wage of $17 per hour, your time and a half...

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