A closed account is any account that has been deactivated or otherwise terminated, either by the customer, custodian or counterparty. The term is often applied to a checking or savings account, or derivative trading, credit card, auto loan or brokerage account. What is a closed account in accounting? In anRead More →
Most lenders will accept documentation proving the account has been paid and won’t require those changes to reflect on your credit report before proceeding with a mortgage application. … If there are any collections on your bureau, you can implement a plan to fix the problem before applying for aRead More →
“In most cases, if you receive an inheritance, tax has been paid and you don’t need to report it as income,” says senior investment advisor John Pacheco, of London, Ontario. “Canada has no inheritance tax, and an estate’s taxes are settled before the remainder is distributed.” Do you have toRead More →
Depreciation is a type of expense that is used to reduce the carrying value of an asset. It is an estimated expense that is scheduled rather than an explicit expense. Depreciation is found on the income statement, balance sheet, and cash flow statement. How does depreciation affect the income statement?Read More →
If your net world income exceeds the threshold amount ($79,054 for 2020), you have to repay part or your entire OAS pension. Part or your entire OAS pension is reduced as a monthly recovery tax. You must pay the recovery tax if: your annual net world income is more thanRead More →
Accounts Receivable – refers to sales that have occurred on credit, meaning that the company has not yet collected the cash proceeds from these sales. … Sales – refers to all sales that the company has realized over the given accounting period, including sales on credit and cash sales. HowRead More →
Leakage is usually used in relation to a particular depiction of the flow of income within a system, referred to as the circular flow of income and expenditure, in the Keynesian model of economics. Within this depiction, leakages are the non-consumption uses of income, including saving, taxes, and imports. WhatRead More →
Proportional taxes are a type of regressive tax because the tax rate does not increase as the amount of income subject to taxation rises, placing a higher financial burden on low-income individuals. What is progressive tax and proportional tax? Proportional Tax- In proportional taxation system, the tax rate remains theRead More →
UBI would ensure all Canadians have a guaranteed level of income from the federal government. Small communities in Manitoba and Ontario have piloted the system, but Canada has never implemented it. Will there be universal basic income? Similarly, Congress, based on its current composition, won’t pass universal basic income. WhileRead More →
In the year you reach full retirement age, we deduct $1 in benefits for every $3 you earn above a different limit. In 2020, the limit on your earnings is $48,600 but we only count earnings before the month you reach your full retirement age. Is a retirement pension consideredRead More →