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An unpresented check is a check that a payer has created, but which the bank on which the check is drawn has not yet made a corresponding payment to the check recipient (payee). This bank glossary is designed to provide a basic understanding of bank account definitions and banking terminology so you can make the...

Prepaid expenses are often encountered in business operations. Another crucial aspect of expense recognition in GAAP is distinguishing between fixed and variable expenses. In this section, we’ll delve deeper into the various facets of expense recognition within GAAP, shedding light on best practices and principles that govern it. Expense Recognition in gaap, an integral part...

On the B2B side, apps like Wave help businesses pay bills, do bookkeeping and send payroll. In 2021, global fintech funding reached a record $132 billion, accounting for 21% of all venture capital dollars. In 2022, global funding for fintech companies contracted to $75.2 billion, a 46% drop from 2021. However, in 2024, startup funding...

Interim financial statements are typically prepared internally. All financial statements are equally important. While audited financial statements provide the highest level of assurance, CPAs do not audit all transactions. They were previously known as verified financial statements. Audited financial statements provide the highest level of assurance of the validity of the information. Only chartered professional...

This ensures the costs are matched with the revenues generated from December’s operations, adhering to the Matching Principle. Despite the payment being made in the following month, the electricity expense relates to December’s operations. ExampleA manufacturing company incurs electricity costs throughout December, but the bill isn’t paid until January. As important as it is to...

The effective interest rate must be higher than the stated interest rate as the company spends an additional amount (issuance cost) to obtain the debt. However, it is not allowed to amortize the debt issuance cost over the bond’s lifetime over the straight-line method. In 2015, the FASB has modified the accounting treatment over the...