This consideration is reflected in the Allowance for Doubtful Accounts, a sub-account whose value is subtracted from the Accounts Receivable account. Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in …
Thus, there is a possibility the call price could be higher than the price the investor paid. Another unique feature of some types of preferred stock is they can be converted into a fixed number of common shares. Preferred stock and common stock can both be attractive securities for investors. While preferred stock may offer […]
This process is also valuable because it encourages businesses to assess potential customers and build a credible customer base. Although businesses have the option to write off uncollectible debt, it’s still better to select customers with a proven track record of positive debt repayment. The customer credit assessment step helps …
All other expenses, such as insurance, maintenance, repairs, and utilities, are the landlord’s responsibility. Triple net leased properties are a popular investment vehicle for investors seeking steady income with relatively low risk. Triple net lease investments typically include a portfolio of three or more high-grade commercial …
One critical consideration when evaluating the ratio is how capital-intensive the industry that the company operates in is (i.e., asset-heavy or asset-lite). All of these categories should be closely managed to improve the asset turnover ratio. Ratio comparisons across markedly different industries do not provide a good insight into how well a …
The federal government’s fiscal year spans 12 months, beginning on October 1 of one calendar year and ending on September 30 of the next. Once posted to the general ledger, you need to balance all of your business’s transactions. Do this at the end of the accounting period, which can be monthly, quarterly, or annually, […]