Net proceeds from the sale of a security are the funds received from the sale minus any commissions or fees paid. For example, if an investor bought a security for $1,000 and sold it for $1,200, the net proceeds would be $1,200 minus any commissions or fees paid. Whats the definition of proceeds? Proceeds is … Read more
Bad debt expense is an accounting term used to describe the expense associated with a customer or client who owes money to a company but is unable to pay. This can happen for a variety of reasons, such as the customer defaulting on a loan or not being able to pay their invoices on time. … Read more
The term “on account” in accounting refers to an accounting method used to record revenue and expenses. This method is also known as the accrual basis of accounting. Under this method, revenue and expenses are recorded when they are incurred, regardless of when they are actually paid. Does a fox eat? Yes, a fox will … Read more
What Is a Bottom Line in Accounting, and Why Is It Important? How can I improve my bottom line performance? There are a number of things you can do to improve your bottom line performance. One is to make sure that you are billing correctly and collecting payments promptly. Another is to reduce your costs, … Read more
A closed account is a financial account that has been closed by the account holder. This can happen for a variety of reasons, such as when the account holder wants to close an account that they no longer use, or when the account holder has been told by the financial institution that the account is … Read more
A held-for-trading security is a financial instrument that is bought or sold with the intention of generating a profit from short-term price movements. These instruments are typically traded on a stock exchange or in the over-the-counter market. Held-for-trading securities are classified as current assets on a company’s balance sheet. They are reported at their fair … Read more
The term “auditability definition” refers to a set of standards that define how financial information should be audited. Auditability standards are important because they ensure that financial information is audited in a consistent and reliable manner. Without these standards, it would be difficult to compare the results of different audits. What is balance sheet audit? … Read more
In accounting, undercast refers to a situation where the total amount of money that should be received (or paid out) is less than the amount that is actually received (or paid out). This can happen for a number of reasons, including errors in calculations, incorrect assumptions, or simply because the amount of money available is … Read more
