Starting a new business is an exciting venture filled with opportunities and challenges. As a startup entrepreneur, one of the critical aspects of ensuring your business’s success is proper bookkeeping. Bookkeeping is the systematic process of recording, organizing, and managing financial transactions for your startup. It plays a crucial role in tracking income, expenses, profits,…
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All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly. Notes payable are debts a business owes to another company, usually a supplier or vendor. If the note is not paid and was discounted without recourse, no further entry is needed. Sometimes, however, they can also be…
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The time value of money is a fundamental concept in finance, which suggests that a dollar received today is worth more than a dollar received in the future. Unlike the NPV function in Excel – which assumes the time periods are equal – the XNPV function takes into account the specific dates that correspond to…
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Thus, S. F. Giant receives only $5,000 instead of $5,200, the face value of the note. Notes payable is a liability that results from purchases of goods and services or loans. Usually, any written instrument that includes interest is a form of long-term debt. The example entries show the credit being made directly to the…
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The time value of money is a fundamental concept in finance, which suggests that a dollar received today is worth more than a dollar received in the future. Unlike the NPV function in Excel – which assumes the time periods are equal – the XNPV function takes into account the specific dates that correspond to…
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The value can be calculated by multiplying the number of authorized shares by their individual par values. The par value of a common share is an arbitrary value assigned to shares to fulfill state requirements. The par value is unrelated to the price at which the shares are first issued or their market price once…
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Although the fluctuating market price of stocks has no effect on the books, par value has a legal bind on part of the company to its investors – no shares will be sold below that price. Companies like to set a very low par value because it represents their legal capital, which must remain invested…
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