Category: Bookkeeping

Prepaid Expenses Examples, Accounting for a Prepaid Expense

While some variability exists in the outcome of the calculation, the minimum amount is fixed. Prepaid rent has different accounting implications under each https://www.bookstime.com/ lease accounting standard. However, under ASC 842, the new lease accounting standard, prepaid rent is now included in the measurement of the ROU asset. Additionally, deferred rent is also recorded for […]

Fund Accounting for Nonprofits: In-Depth Guide to Basics

A nonprofit chart of accounts for your organization is the list of each account that money comes into, or out of, in your organization. This list is created by your organization and will vary depending on your nonprofit’s needs. By using FastFund, NLAC now focuses more on what they do best—bringing art to the community—while […]

What is the debt ratio?

A high ratio indicates a company that uses debt to obtain leverage and relies heavily on leverage to finance its operations. While this may, in part, be a characteristic of its industry, it may present a higher risk of insolvency to investors and lenders. If the ratio, which shows debt as a percentage of assets, […]