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Enron, using its mark-to-market accounting method, claimed a $500 million gain on the swap contracts in its 2000 annual report. (LJM2), to buy Enron’s poorly performing stocks and stakes to improve its financial statements. Whitewing was used to purchase Enron assets, including stakes in power plants, pipelines, stocks, and other investments. The 1899 Browns, renamed […]

Top-down budgeting is an effective budgeting strategy that can help a company limit its spending. Executives decide how money is spent to keep the company afloat and promote growth. The power is at the top of the ladder, keeping a strict hierarchy and a clear understanding of the chain of command. In top-down vs bottom-up […]

Master the fundamentals of financial accounting with our Accounting for Financial Analysts Course. Once this expense is calculated using the interest expense formula in accounting, it is recorded as an accrued liability for the borrower. The first method is called as simple interest method, in which interest expense is calculated by multiplying principal outstanding, rate […]

Because a static budget remains unchanged regardless of sales volume or revenue, they’re easy to track and report on. Static budgets are fixed; they won’t fluctuate with changes to your business sales volume or figures in a given period. Instead, it uses predicted fixed costs for a given period, such as a month, quarter, or […]

A company estimates it will incur $100,000 in total manufacturing overhead costs for the upcoming accounting period and expects to produce 10,000 units. The predetermined overhead rate is a numerical estimate of how much the company will spend on indirect costs and how much it plans to produce during the period. We will use the […]

Bangor officials said the incident happened during a snowy, wintry weather event, but other planes were still taking off and landing at that time. Turning numbers into knowledge to confidently solve complex business problems and seize opportunities. At Doeren Mayhew, those are not mutually exclusive propositions. We apply a rare depth of expertise and best […]

Liabilities are what your business owes to third parties. However, unpaid expenses—such as wages payable or utilities payable—can create liabilities until they are settled. Expenses reduce equity because they decrease retained earnings. Equity does not always change directly when liabilities increase. Liabilities are obligations owed to others, such as loans or accounts payable. Long-Term Debt […]

Our retained earnings services are ideal if you want to keep track of your financial data and need professional help to increase your profitability. When everything is gathered, we begin to assess an ideal service plan. Our service plans are customized to each client based on their needs and can range from full back-office accounting […]