Forming an entity is normally a tax-free endeavor. Starting a proprietorship never has any tax consequences. However, contributing noncash assets to a corporation, a partnership, or a limited liability company…
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This article helps to answer questions about the advantages and disadvantages of choosing different forms of ownership when starting a new business. It is important to identify the characteristics of…
Learn about meanings of common words in tax and accounting industry. This glossary include definitions of tax and accounting terms used very often. Rental property related tax terms. Direct expenses…
An accounter is a person who provides an account of events according to the dictionary. But most people refer to an accountant when they use the term accounter. Accounters ensure…
Implicit costs are any resources that may be underutilized for generating profit. When a company or business endures operations such as opening new headquarters or taking a loss on earnable…
“Explicit costs” are costs that can be recorded and measured. The importance of explicit cost as a category is related to the importance of implicit cost, its contrary. Implicit cost…
Investment is the use of capital in long-term projects that are expected to result in monetary profit. “Investment” derives from the Latin word investio “to clothe”. The economic sense derives…
Hyperinflation is when the prices of all goods and services rise uncontrollably over a defined period. Hyperinflation is extremely rapid inflation. Inflation measures the pace of rising prices for goods…
For businesses, capital is the money it has available for paying for their day-to-day operations as well as funding future growth. Capital is a very broad term generally conferring benefit…
The definition of a write-off is a business expense deducted for tax purposes. Expenses include anything purchased in the course of running a business for profit. The cost of these…
