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premiums are non income to the individual and non deductible to the business
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How you can explain accounting is an information system?
Accounting is an information system for measuring, processing and communicating information that is useful in making economic decision. Every business is conducted to make profit. Accounting knowledge is there to assist the business man to assess whether the business is making profit or loss. In accounting brings discipline on how to source money, how to spend and how much to save. Accounting ensures consistency in the treatment of various transactions. Accounting involves gathering of financial data, recording classifying, summarizing and communicate the results to the owners of the business, or to others allowed to receive this information. Accounting should not be confused with Book keeping as Book keeping is the part of accounting concerned with recording of financial data. Book keeping is the process of recording data relating to accounting transactions in the books of accounts.
How did accounting came to existence?
it came by a man named Luca Pacioli in the year 1494 in venice
Differences between manual accounting system and computer based accounting system?
Manual accounting requires that all journal entries, invoices and other financial documents be created by hand. Computerized accounting allows users to input information into accounting software programs.SpeedAccuracyComputerized accounting produces information much faster than manual accounting. Accounting software packages, such as QuickBooks and Peachtree, come with built-in databases that allow users to input data. Financial StatementsManual accounting systems are prone to mathematical errors and misplaced numbers. With a computerized accounting system, your company data is automatically calculated based on numbers you input. CostIn a manual accounting system, you have to prepare your company's income statement, balance sheet and statement of owner's equity by hand. Information from your journal entries helps formulate your company's financial statements. Computerized accounting systems allow financial statements to be created from information stored in the database. ReportsThe cost of computerized accounting systems can range from hundreds to thousands of dollars for large businesses. A computerized accounting system may save on man hours used for creating financial statements and other reports. For this reason, many small and mid-sized businesses use computerized accounting software.Reports are created in a timely manner when using a computerized accounting system. Reports generated from computerized accounting software allow managers to run the company in a more efficient manner. Creating reports in a manual accounting system may lead to more staff frustration and result in having to work with outdated information.Bilawalmagsi@live.com
Uses of ratio analysis?
The ratio analysis is useful for inter firm comparison which basically implies that a company compares its performance with that of its industry peers. Ratio analysis is very important in simplifying the accounting figures to make then understandable to a common man.
Is it good to start teaching English for an accountant?
English is a mode of communication that has no specific professional whether you are an English man/woman, you still need it, accounting terminolgies too are described in English, so if you ever thought of escaping it, my friend do not ever try to do so..
What is Key employee participation in group insurance plan?
This question does not make sense. Are you asking about "key man insurance?"
Does the beneficiary of a key man life insurance have to be the company?
The purpose of Key Man Life Insurance is to benefit the company and provide funds for them to recruit hire and train another key man should the insured die. It is the company that would suffer the loss and therefor is the beneficiary.
What are some companies associated with Key Man Insurance?
Key Man Insurance is an insurance policy taken out by a business to compensate that business for financial losses that would arise from the death or extended incapacity of an important member of the business. Some companies associated with this policy include Nationwide and Mozdex.
Does Xerox buy life insurance policies on its employees with Xerox as the beneficiary?
It could with something called Key Man Insurance but not without the Key Man (or woman) signing the application in consent. It does that for it top managers, like CEO and President, but not for most of its employees.
Is key man insurance taxable to the person covered as is the case on group-term life insurance paid by an employer's company over 50K?
Key person life insurance is coverage on the life of a key employee and payable to the employer upon that employee's death. The purpose is to protect the company from the financial loss associated with the loss of the employee. Since the employee in no way benefits from a key person life insurance policy, there are no tax consequences to the employee.
Is Key Man insurance taxable?
No it is not. It is recorded as revenue for GAAP purposes, but is not considered business income. 10/18/2008
What has the author Thomas Emley Young written?
Thomas Emley Young has written: 'Insurance office organisation, management, and accounts' -- subject(s): Insurance, Accounting 'A plain guide to investment and finance' -- subject(s): Accessible book, Finance, Investments 'Insurance, a practical exposition for the student and business man' -- subject(s): Accessible book, Insurance
Can a woman get insurance on a man if he is married?
If the woman and man are married yes, she can get insurance on her husband. If the woman is single and the man married then no, she can't get insurance on him.
Can a man claim his live in girlfriend on his insurance if he's still legally married to someone else?
The man must discuss that issue with his insurance company.The man must discuss that issue with his insurance company.The man must discuss that issue with his insurance company.The man must discuss that issue with his insurance company.
Which kind of life insurance policy protects a company from loss caused by the death of a valuable employee?
Key Man life insurance could be either on a term or permanent life plan, where the beneficiary is the employer. The funds can be used by the beneficiary company to hire and train a replacement for the key person employee.
Do you have to be a relative or wife to open a insurance policy on someone?
In order to take out life insurance on someone, you have to have what is legally known as "insurable interest" in that person. A spouse or dependant has an obvious insurable interest, but there are other cases as well. For example, a business can take out life insurance on a particularly valued employee. This is known as "key man insurance" (apparently key women are not as important) since the death of an employee can cause financial problems for the employer.
Who do accounting of government department?
the authorities whatcha think man
