Category: Bookkeeping

Inflating assets can lead to higher revenues or higher inventory values that can make a company’s asset position stronger than it actually is. While these investments are reported on the balance sheet and income statement, the methodologies can be complex and may create opportunities for fraudulent reporting. These investments are booked as assets, which can…

She reports $2,000 income and lists the $5,000 property tax as an expense against it, along with any other costs (say $500 in fence repairs, etc.). The rental activity now shows a loss of $3,500 ($2,000 income minus $5,500 expenses). Because this is a passive activity (she’s not a real estate professional and it’s a…

The choice between subscription and one-off payments can significantly affect financial management strategies. For instance, a subscription model provides scalability and adaptability, fitting the dynamic nature of modern enterprises. However, having all costs upfront can simplify budgeting and reduce ongoing financial commitments. Therefore, businesses must weigh their immediate needs against potential future growth when deciding…