compensating balances definition and meaning


If your agreement has an average balance agreement, you must maintain a minimum average balance over an agreed-upon term, which is typically 30 days. With a minimum fixed balance, you’ll be required to always keep an agreed minimum balance with the lender. Understanding the factors influencing their size empowers businessesContinue Reading

Best Bookkeeping Nashville, TN 2024


Our clients choose Acuity for its customer service-oriented culture, confident that their expectations will be exceeded by any and everyone within our company. So, no matter what life throws at us — whether someone moves onto new opportunities, goes on vacation, or gets sick — you’ve got an entire teamContinue Reading

What Is the Formula for Calculating Earnings per Share EPS?


They also get dividends when issued by the company but do not have a preference to get it. Before knowing how to calculate common stock on balance sheet; let us know its advantages. Calculating common stock on the balance sheet has several benefits for companies, investors, and other stakeholders.Continue Reading

How do I set up a contra account or control the natural balance of a GL account in Quickbooks Online?


Those who are struggling with recording contra accounts may benefit from utilizing some of the best accounting software currently available. Let me give you the detailed steps on how to set up a contra account for accumulated depreciation. Therefore, these companies must maintain an obsolete inventory reserve account to netContinue Reading

Accounting for Investments: Cost or Equity Method The Motley Fool


The share of the investee’s profits that the investor recognizes is calculated based on the investor’s ownership percentage of the investee’s common stock. When calculating its share of the investee’s profits, the investor must also eliminate intra-entity profits and losses. Further, if the investee issues dividends to the investor, theContinue Reading