Some people have sinking funds for things that might be considered emergencies, like repairing a car. Basically, there is only a very small difference between a sinking fund and a savings account, as both involve setting aside an amount of money for the future. The main difference is that the former is set up for […]
In contrast, costs of variable nature are generally more difficult to predict, and there is usually more variance between the forecast and actual results. The amount incurred is directly tied to sales performance and customer demand, which are variables that can be impacted by “random” factors (e.g. market trends, competitors, …
Therefore, a trial balance provides the basis to check the accuracy of a ledger. Another way to find an error is to take the difference between the two totals and divide by nine. If the outcome of the difference is a whole number, then you may have transposed a figure. For example, let’s assume the […]
For example, the Trader Joe’s business name is Trader Joe’s Co., but their customer name will always be Trader Joe’s. When you find the perfect business name to set up your company, you have to make sure that it isn’t already being used by another business in your state. Before filing all of the necessary […]
However, if you don’t plan to use your own name as your business name, you will need to register a Doing Business As (DBA) name or Fictitious Business Name (FBN) depending on your state. However, you may need to obtain a business license or permit from your local government. A sole proprietorship grows more slowly […]
A subsidiary is independent, operating as a separate and distinct entity from its parent company. Often, a parent company may issue exchangable debt that converts into shares of the subsidiary. That said, the parent company, as a majority owner, can influence how its subsidiary is run and may be liable, for example, for the subsidiary’s …