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Beginning January 1, 2011, if you are a paid tax preparer you must use a valid Preparer Tax Identification Number (PTIN) on returns you prepare. If you do not have a PTIN, you must get one by using the new IRS sign-up system. Even if you have a PTIN but you received it prior to …

Get an Individual Taxpayer Identification Number ITIN to file your tax return Read More »

And let’s not forget the all-important Allowance for Doubtful Accounts, acting as a financial crystal ball that estimates the portion of accounts receivable that might just turn into fairy dust. Businesses benefit by forecasting more realistic revenue figures, which helps in strategic planning and maintaining investor confidence. A contra account is an account listed within …

Contra Accounts: Explained, Popular Types and Examples Read More »

Thus, they are items on a balance sheet you initially enter as a liability (an obligation to fulfill in the future) but later become an asset. Payment from a consumer that has not yet gotten a good or service is referred to as deferred revenue. Due to the incomplete nature of the revenue recognition process …

What is deferred revenue and why it’s treated as a liability in accounting Read More »

A positive NPV indicates that the projected earnings from an investment exceed the anticipated costs, representing a profitable venture. A lower or negative NPV suggests that the expected costs outweigh the earnings, signaling potential financial losses. Therefore, when evaluating investment opportunities, a higher NPV is a favorable indicator, aligning to maximize profitability and create long-term …

Binomial Distribution Probability Calculator Read More »