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Is Operating leases considered to be a spontaneous source of financing?
I don't know if spontaneous is the right word; but they are considered by some to be a type of "off-balance sheet" financing. The reason for this is because very often, companies lease an item with the intent of eventually owning that item. An operating lease does not create a liability on the balance sheet the way financing an asset would. That being said, an asset that is being "financed" through a lease should more correctly be classified as a capital lease, which does create a balance sheet liability.
What costs can you include in a new fixed asset?
Fixed assets are also tangible assets with the following characteristics: (1) for the production of goods, provide services, for rental or administrative purposes; (2) to a term of over one year; (3) high unit price. Classified by economic use of fixed assets, fixed assets can be divided into production and business class business class of all fixed assets of .1 non-production, production and operation class of fixed assets, is the direct service of production, business process various types of fixed assets. Such as the production and management with houses, buildings, machinery, equipment, utensils, tools. 2, non-production business with the fixed assets is not directly serving production and business processes of various fixed assets. Such as dormitories, dining hall, bathrooms, hairdressing room and so the use of housing, equipment and other fixed assets, etc.. Hug the use classification of fixed assets can be divided into fixed assets in use, no use of fixed assets and fixed assets not required. Classification of the ownership of fixed assets can be divided into fixed assets owned fixed assets and rental income. Leased fixed assets are divided into operating lease of fixed assets and fixed assets financed by leasing. The economic use of fixed assets and use of comprehensive classification: 1, production and operation of fixed assets. 2, with fixed assets of non-production operations. 3, leased fixed assets. Means the lease under operating lease of fixed assets to other units. 4, No need for fixed assets. 5, no use of fixed assets. 6, the land. That in the past has accounted for the land alone. Paid for land acquisition compensation fee, should be included in land-related housing, the value of the building, 7, fixed assets financed by leasing. Details of fixed assets subject to classification according to the set, also can directly write the name of the specific device. The use of accounting software have now fixed detailed title. Subjects use a lot, as long as the related fixed assets accounting are required.
Should deprciation should be charged on idle assets?
Under all of US GAAP, CDN GAAP and IFRS, idle assets should continue to be depreciated.
Unexpired expense should write in income statement or balance sheets?
Unexpired expense is current assets until used so it is part of assets of business and should be included in assets side of balance sheet.
What is the difference between current assets and quick assets?
Current Assets should be convertible into cash in the coming year. Quick assets are cash or are easily converted into cash (no liquidity or marketability issues).
Difference between permanent current assets and temporary current assets?
permanent asset should be financed with permanent and spontaneous sources of financing,while temporary assets should be financed with temporary sources of financing.
Normally permanent current assets should be financed by?
long term funds
Formula for net operating assets?
Get the balance sheet and sererate any financing activities from the operating activities. Financing activities are anything that is interest-bearing like debt, equity investments etc and not part of the business' everyday operations. The reformatted balance sheet should look like this: Operating Activities: Current Assets - Current Liabilities = Net Current Assets + Non Current Assets - Non Current Liabilities = NET OPERATING ASSETS - Financing activities (Net Financial Obligations) = Equity Cash is not an operating asset so the basic equation is: Total Assets - Cash = Operating Assets Total Liabilities - LTD - Current LTD = Operating Liabilities NOA = Operating Assets - Operating Liabilities
Can you register a financed car?
You can, should, and are legally required to register a financed car.
Will you be able to buy a new car if you let them repossess your current car?
You will not be able to immediately buy a new car if you are financing it because it will be difficult to get a loan. After some time has passed you should be able to get financed with a higher interest rate.
Your financed car breaks down and is not worth fixing what should I do?
You will have to weigh the costs of having a car repair verses financing a new car. Financing another automobile may cause your insurance rate to go up and increases your monthly payments. However, if it is unreliable you may consider selling the old car to a junk yard.
If im financing a car and go bankrupted do you lose the car?
You should be ok as long as you keep finance co out of included creditors. If you haven't financed yet & have poor credit, that will affect your interest. Make sure they don't gouge you before you commit.
Which business function do experts agree you should focus on first when preparing to start a business?
Financing
Can The SBA Financing Be Used For The Construction Purposes?
Sure, as long as the business will occupy at least 60% of the new building. The construction loan will convert to a completely amortized loan on the construction. If a current building is financed or refinanced, your small business should occupy at least 51% of the facility.
Should Fire Extinguishers be treated as Fixed Assets?
fixed assets
Is Operating leases considered to be a spontaneous source of financing?
I don't know if spontaneous is the right word; but they are considered by some to be a type of "off-balance sheet" financing. The reason for this is because very often, companies lease an item with the intent of eventually owning that item. An operating lease does not create a liability on the balance sheet the way financing an asset would. That being said, an asset that is being "financed" through a lease should more correctly be classified as a capital lease, which does create a balance sheet liability.
What type of financing should you consider first as it is the preferred Government method of contract financing?
Performance Based Payments
