Accounting Tools

MARCH 2, 2024

Advantages of an Equipment Trust Certificate Equipment trust certificates may be employed because of the associated tax benefit; because the borrower does not have title to the asset, the borrower does not pay property taxes on it until the associated debt has been paid off. This represents a substantial deferral of tax payments.

Corporate Finance 40

Corporate Finance Tax 40

Accounting Tools

FEBRUARY 12, 2024

To do so, he takes on a loan that has a net after-tax cost of 8%. After one year, he finds that the actual net after-tax return on his purchase of the manufacturing company is just 3%. Related AccountingTools Courses Corporate Finance Financial Analysis The Interpretation of Financial Statements Related Article Leverage Ratios

Corporate Finance 40

Corporate Finance Financial Analysis Financial Statements Tax 40

Accounting Tools

NOVEMBER 5, 2023

Related Courses Accounting for Investments Corporate Finance Treasurer's Guidebook What is Return of Capital? If so, the investor may have to alter the method being used to account for the investment. This usually means switching from the equity method of accounting to the cost method of accounting.

Corporate Finance 40

Corporate Finance Tax Accounting Accounting 40

Accounting Tools

JUNE 20, 2023

Related Courses Corporate Finance Treasurer's Guidebook The difference between recourse and non-recourse debt is the ability of the lender to take the assets of the borrower if the debt is not paid. Non-recourse debt favors the borrower, while recourse debt favors the lender.

Corporate Finance 75

Corporate Finance Tax Accounting Accounting 75

Accounting Tools

JANUARY 24, 2024

Second, interest expenses are tax deductible, which lowers the after-tax cost of debt financing. This means that a business generates a net gain in its income by using debt financing. Third, debt can be used to invest in activities that generate more income than the cost of the debt.

Corporate Finance 40

Corporate Finance Tax 40

Accounting Tools

MAY 15, 2024

There are also several advantages to term loans from the perspective of the borrower, which are as follows: Tax deductible. Depending on the situation, the interest paid on a term loan may be tax deductible. Credit score enhancement.

Corporate Finance 40

Corporate Finance Tax 40

Accounting Tools

MARCH 28, 2024

If they had instead invested $200,000 and the business had borrowed $800,000 to still achieve total financing of $1 million, the return on investment would now be 50% (though the after-tax cost of debt must also be considered).

Corporate Finance 40

Corporate Finance Financial Analysis Financial Statements Tax 40

Accounting Tools

JANUARY 24, 2024

Second, interest expense is tax deductible, so its net cost to the borrower can be comparatively low. And finally, if the borrower uses the funds to purchase assets that generate a reasonable return, it can earn a net gain over the cost of the funds acquired.

Corporate Finance 40

Corporate Finance Tax Accounting Accounting 40

Accounting Tools

AUGUST 25, 2023

Related Courses Corporate Finance GAAP Guidebook What is a Holding Period? A holding period is the duration of an investment by an investor. It begins with the purchase date by the investor and ends with the sale date.

Corporate Finance 40

Corporate Finance Tax 40

Accounting Tools

MAY 8, 2023

Related Courses Capital Budgeting Corporate Finance What is the Cost of Preferred Stock? These dividends are not tax deductible , so the cost of preferred stock is always higher than the cost of debt – for which interest payments are tax deductible.

Corporate Finance 40

Corporate Finance Budgeting Tax Financial Analysis 40

Accounting Tools

AUGUST 8, 2023

Related Courses Corporate Cash Management Corporate Finance Treasurer's Guidebook What is a Bearer Bond? However, they are ideal for those investors who want their ownership of securities to remain anonymous, which is especially attractive for those trying to hide their income from tax authorities.

Corporate Finance 40

Corporate Finance Tax Accounting Accounting 40

Accounting Tools

MAY 7, 2024

Leaseback deals are most common in the real estate market, such as when a company sells its corporate headquarters and then leases it back. Related AccountingTools Courses Accounting for Leases Corporate Finance Treasurer’s Guidebook Advantages of a Leaseback There are multiple benefits associated with a leaseback.

Corporate Finance 40

Corporate Finance Tax Accounting Accounting 40

Accounting Tools

APRIL 5, 2023

Related Courses Corporate Cash Management Corporate Finance Investing Guidebook What is Interest Earned? For example, interest earned can be generated from funds invested in a certificate of deposit or an interest-bearing bank account.

Accruals 40

Accruals Corporate Finance Deposits Tax 40

Accounting Tools

MARCH 27, 2023

Related Courses Corporate Finance Investor Relations Guidebook Public Company Accounting and Finance What is Shareholder Value Added? It provides more relevant information than the net profit figure normally reported by a business, since net profit alone does not take into account the cost of funds.

Corporate Finance 40

Corporate Finance Tax Accounting Accounting 40

Accounting Tools

JANUARY 19, 2024

For example, national governments can issue debentures, because they can raise taxes to pay off their obligations. Related AccountingTools Courses Corporate Cash Management Corporate Finance Treasurer's Guidebook Related Articles Debenture Bond Subordinated Debenture

Corporate Finance 40

Corporate Finance Billing Tax 40

Accounting Tools

AUGUST 3, 2023

Related Courses Corporate Finance Investor Relations Guidebook Public Company Accounting and Finance What is Shareholder Value? Further, they might engage in tax management ploys to pay less than the company’s fair share of taxes.

Corporate Finance 40

Corporate Finance Financial Reporting Tax Accounting 40

Accounting Tools

JUNE 12, 2023

Related Courses Capital Budgeting Corporate Finance Treasurer's Guidebook What is the Simple Rate of Return? Terms Similar to Simple Rate of Return The simple rate of return is also known as the unadjusted rate of return and the accounting rate of return.

Corporate Finance 75

Corporate Finance Budgeting Tax Financial Analysis 75

Accounting Tools

JANUARY 2, 2024

Or, if the entity is a government, it cannot raise sufficient cash from taxes to pay for its bond obligations. Related AccountingTools Course Corporate Finance Types of Financial Risk There are several types of financial risk, which include those noted below.

Corporate Finance 40

Corporate Finance Tax 40

Accounting Tools

JULY 11, 2024

The optimal capital structure of a business is the blend of debt financing and equity financing that minimizes its weighted-average cost of capital while maximizing its market value. The ratio is usually plotted on a trend line to see how it is changing over time.

Financial Analysis 40

Financial Analysis Corporate Finance Tax 40

Accounting Tools

JUNE 7, 2023

Related Courses Corporate Finance The Interpretation of Financial Statements Treasurer's Guidebook What is Financial Leverage? Second, interest expense is tax deductible in many tax jurisdictions, which reduces the net cost of debt to the borrower. Financial leverage is the use of debt to buy more assets.

Corporate Finance 75

Corporate Finance Financial Statements Tax Financial Analysis 75

Accounting Tools

MAY 9, 2023

Related Courses Capital Budgeting Corporate Finance What is the Cost of Debt? The cost of debt is the after-tax effective rate paid by a borrower on its debt. The cost of debt is the least expensive part of the cost of capital, since it is tax deductible.

Corporate Finance 40

Corporate Finance Budgeting Tax Financial Analysis 40

Accounting Tools

OCTOBER 5, 2023

Related Courses Corporate Finance An investment banker assists clients with either fund raising or merger and acquisition activity. In the latter case, the level of specialization may extend to just offering advice on certain types of tax-specific transactions, or in regard to corporate spin-offs or reorganizations.

Corporate Finance 40

Corporate Finance Tax Accounting Accounting 40

Accounting Tools

FEBRUARY 15, 2024

Related AccountingTools Courses Corporate Cash Management Corporate Finance Treasurer's Guidebook Obtain an Interest Deduction The interest expense on bonds is tax deductible , so a company can reduce its taxable income by issuing bonds. This allows the company to lower its financing cost.

Corporate Finance 40

Corporate Finance Tax Accounting Accounting 40

Accounting Tools

MAY 13, 2023

Related Courses Corporate Cash Management Corporate Finance Treasurer's Guidebook What is an Unsecured Bond? Alternatively, the entity may be so large, profitable, and well-financed that investors are willing to do without the extra protection of a security feature.

Corporate Finance 40

Corporate Finance Tax 40

Accounting Tools

APRIL 24, 2023

Related Courses Corporate Finance Treasurer's Guidebook What is the Yield to Maturity? Yield to maturity is the rate of return expected on a bond if it is held until its maturity date. It is expressed as an annual rate of return.

Corporate Finance 40

Corporate Finance Tax Financial Analysis 40

Accounting Tools

NOVEMBER 2, 2023

Related Courses Corporate Cash Management Corporate Finance Treasurer's Guidebook What is Middle Market Banking? Middle market banking is the concept of providing investment banking services to companies with revenues in the range of $50 million to $1 billion.

Corporate Finance 40

Corporate Finance Tax 40

Accounting Tools

APRIL 22, 2023

Related Courses Corporate Cash Management Corporate Finance Treasurer's Guidebook What is Positive Leverage? The 2% differential is positive leverage that will result in income of $20,000 for the person, prior to the effects of income taxes.

Corporate Finance 40

Corporate Finance Tax 40

Accounting Tools

DECEMBER 20, 2023

Related AccountingTools Courses Corporate Cash Management Corporate Finance Investing Guidebook Understanding Convertible Securities Investors want the option to convert into common stock, so they are usually willing to accept a lower rate of return on the interest payments being made to them on the original convertible security.

Corporate Finance 40

Corporate Finance Financial Statements Tax 40

Accounting Tools

NOVEMBER 3, 2023

Related Courses Corporate Finance Treasurer's Guidebook What is Trading on Equity? If a company generates a profit through this financing technique, its shareholders earn a greater return on their investments. And second, interest expense is tax deductible in many tax jurisdictions, which reduces the net cost to the borrower.

Corporate Finance 40

Corporate Finance Tax Financial Analysis 40

Accounting Tools

AUGUST 5, 2023

Related Courses Capital Budgeting Corporate Finance What is the Weighted Average Cost of Capital? The weighted average cost of capital (WACC) is a compilation of the aggregate financing cost of a business. In this calculation, each element of the firm’s financing cost is proportionately represented.

Corporate Finance 40

Corporate Finance Budgeting Tax Financial Analysis 40

IMA's Count Me

JULY 8, 2019

Ray Dalio: [link] Adam Grant: [link] Carol Dwek: [link] FULL EPISODE TRANSCRIPT Music : (00:00) Adam : (00:03) Welcome back to Count Me In and thanks for joining the conversation about all things affecting the accounting and finance world. And as I kind of got on in in my career I realized I needed a strong kind of finance background.

Accounting 40

Accounting Accounting Corporate Finance Computation 40

Jetpack Workflow

JUNE 6, 2024

Big Picture Results is an accounting and tax company dedicated to helping profitable, growing businesses, particularly those operated by marginalized populations, maximize their financial outcomes. In 2012, Jessica transitioned from the corporate world to entrepreneurship, launching Big Picture Results.

AR 52

AR Corporate Finance Billing Tax 52

AvidXchange

FEBRUARY 1, 2022

We pinpointed three ways to consider: sharpen your strategic thinking and planning skills, gain specialized education in digital technologies and decide whether you want to progress further in an accounting or finance career – they’re not exactly the same. So should you if you want to rise in the corporate finance profession.

AP 52

AP Corporate Finance Accounts Payable Accounts Payable 52

Accounting Tools

JUNE 7, 2023

Related Courses Corporate Finance Financial Analysis What is the Cost of Capital Formula? To derive the cost of debt, multiply the interest expense associated with the debt by the inverse of the tax rate percentage, and divide the result by the amount of debt outstanding. Its incremental tax rate is 34%.

Financial Analysis 40

Financial Analysis Corporate Finance Tax 40

Accounting Tools

OCTOBER 20, 2023

Related Courses Crowdfunding Corporate Finance Treasurer's Guidebook Working Capital Management What is a Working Capital Loan? A working capital loan is intended to finance the day-to-day operations of a business, paying for such short-term investments as accounts receivable and inventory.

Accounts Receivable 40

Accounts Receivable Accounts Receivable Account Receivables Financial Statements 40

IMA's Count Me

SEPTEMBER 4, 2019

Adam, you and I both asked Sean a variety of questions about the impact of various technologies on accounting and finance. Music : (00:32) Adam Larson : (00:59) You are clearly well versed in the emergence of technologies in accounting and have had great exposure to how they've made an impact on the industry.

Accounting 40

Accounting Accounting Corporate Finance CPA 40

IMA's Count Me

DECEMBER 26, 2019

IMA: [link] CMA: [link] Exam Changes: [link] FULL EPISODE TRANSCRIPT Mitch : (00:05) Welcome back for another bonus episode here on Count Me In, IMA's podcast about all things affecting the accounting and finance world. In my mind, the CPA is geared towards orders and tax specialists. Well I've been here now for 25 years.

CPA 40

CPA Financial Statements Corporate Finance Management Accounting 40