Typically, they’re tax deductible as long as a company operates to earn a profit, expenses are commonly known, and necessary. Operating income is similar to a company’s earnings before interest and taxes (EBIT); it is also referred to as the operating profit or recurring profit. Both measurements calculate the amount of money a company earned less a […]
Category Archives: Bookkeeping
Unsecured credit is riskier for lenders than secured credit, so they typically charge higher interest rates and fees for unsecured credit lines. The maximum amount of funds a customer is allowed to draw from a line of credit is typically called the credit limit or overdraft limit. The term credit limit is commonly used for […]
Because preferred shares have guaranteed dividends regardless of whether the company makes a profit or not, dividends are said to be in arrears if the company misses a cumulative dividend payment. The dividends in arrears must be disclosed in the footnotes to the financial statement. The company is also restricted from making any dividend payouts […]
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