After six months, Speakers, Inc. is growing rapidly and needs to find a new place of business. Ted decides it makes the most financial sense for Speakers, Inc. to buy a building. Since Speakers, Inc. doesn’t have $500,000 in cash to pay for a building, it must take out a loan. Business owners with a sole proprietorship and small businesses that aren’t corporations use Owner’s Equity. Therefore cash (asset) will reduce by $60 to pay the interest (expense) of $60. However, some assets are less liquid than others, making them harder to convert to cash. Regardless of how the accounting equation is represented, it is important to remember that the…

However, in the context of the word ‘nominal,’ it implies that the fee is smaller in comparison to its true value. (b) An individual who performs hours of service as a volunteer for a public agency may receive payment for expenses without being deemed an employee for purposes of the FLSA. A school guard does not become an employee because he or she receives a uniform allowance, or reimbursement for reasonable cleaning expenses or for wear and tear on personal clothing worn while performing hours of volunteer service. You might avoid late payment fees by setting up automatic payments for at least your minimum payments. The phrase “same type of…

The amount of business tasks you need to consider daily is long, including ordering and maintaining a vast inventory of raw ingredients, writing recipes, paying distribution fees and service taxes… The list goes on. Because there is so much possibility for error, operations can easily fall between the cracks. In some states, breweries are required by law to sell through distributors, who take a massive cut from the retail price. Meanwhile, taproom sales can be quite high, and if direct distribution to retailers is allowed, then the brewery has a price point for them that’s somewhere between those two extremes. So, it makes a lot of sense to structure the…

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