Why is capital important for economic growth? In order to create capital you need labor to produce it. Capital is used to generate wealth through investments. What is gained with capital deepening within an economy? Labor productivity growth comes from increases in the amount of capital available to each workerRead More →
If the first payment is considered additional paid-in capital, then any additional payments to the principal (owner) are considered dividend distribution (or wage) and will be taxable. A loan may be considered additional paid-in capital if an agreement doesn’t exist between the S corp and the principal. Do you addRead More →
Ikaria, an island of 99 square miles and home to almost 10,000 Greek nationals, lies about 30 miles off the western coast of Turkey. Its jagged ridge of scrub-covered mountains rises steeply out of the Aegean Sea. Why do Ikarians live so long? Surveys conducted also show that a significantRead More →
Capital expenditures (CAPEX) are a company’s major, long-term expenses while operating expenses (OPEX) are a company’s day-to-day expenses. Examples of CAPEX include physical assets, such as buildings, equipment, machinery, and vehicles. Is M&A a capital expenditure? M&A = merger and acquisition; CAPEX = capital expenditure; CF = cash flow; LEVRead More →
Drawing Accounts. … When a partner takes a distribution in the form of money or assets, the draw reduces the amount in her capital account and her total financial interest in the business. Is drawing decreased with a credit? The accounting transaction typically found in a drawing account is aRead More →
An investment is essentially an asset that is created with the intention of allowing money to grow. … Investment may generate income for you in two ways. One, if you invest in a saleable asset, you may earn income by way of profit. Is investment capital or revenue? Where anRead More →
Titles should be capitalized, but references to the job are not. For instance, if you are using a job title as a direct address, it should be capitalized. Do you capitalize attorney general in a sentence? AP Style tip: Use attorney general, attorneys general. Never abbreviate. Capitalize as a titleRead More →
Use Schedule D (Form 1040) to report the following: The sale or exchange of a capital asset not reported on another form or schedule. Gains from involuntary conversions (other than from casualty or theft) of capital assets not held for business or profit. What is the difference between Schedule DRead More →
Any long term assets such as property, infrastructure or equipment (including owned software licenses) are considered capital expenditures and from an accounting standpoint must be depreciated over the life of the asset to reflect their current value on the balance sheet. Should licenses be Capitalised? Licenses & Permits are capitalizedRead More →
An electrical system, including a lighting system; A cold water system; A space or water heating system, a powered system of ventilation, air cooling or air purification, and any floor or ceiling comprised in such a system; What can you not claim AIA on? You cannot claim AIA on: cars.Read More →