Accounting for Franchises
Contract related intangible assets will include franchise and licensing agreements, construction permits, broadcast rights, and service or supply contracts. Below is an outline with visuals as taught by Universal CPA Review. Franchisee Accounting – Franchise accounting is a similar concept to accounting for intangible assets, however, certain specific variables apply. Initial franchise fees – The present value […]More
Are Intangible Assets Capitalized or Expensed?
The short answer is it depends. Intangible assets (e.g., trademarks, copyrights, patents etc.) can generally present themselves on a company’s financial statements in one of two ways, they can either be purchased or developed internally. While purchased/acquired intangible assets will always be capitalized as a noncurrent asset on the balance sheet and subsequently amortized, the […]More
What is a depreciation tax shield?
In general, a tax shield is anything that reduces the taxable income for personal taxation or corporate taxation. Depreciation is considered a tax shield because depreciation expense reduces the company’s taxable income. When a company purchased a tangible asset, they are able to depreciation the cost of the asset over the useful life. Each year, […]More
How Joey finally passed the AUD section of the CPA exam
Audit is one of those subjects that I always refer to as easy to learn, yet hard to master. Sort of like skiing. After I had passed the FAR exam with an 81% I was riding a high, and thought the rest of the CPA exam would be smooth sailing. Boy was I wrong. Below […]More
What is a digital signature?
A digital signature is a type of electronic signature (e-signature) that verifies the authenticity of a digital document or message. Before digital signatures, you could sign a document and then the document owner could modify or change the document after you signed. However, with a digital signature, the signature is timestamped and a private key […]More
What is the difference between single tenant architecture and multi-tenant architecture?
You are probably wondering what the main difference between single tenant architecture and multi-tenant architecture is for cloud service providers. The key difference is whether the cloud service provider uses one app (or instance) for each customer or one app for multiple customers. In other words, in multi-tenant architecture, the customers “share” the application rather […]More
Types of scalability in cloud storage
There are two scalability types that should be analyzed when it comes to cloud storage providers: Vertical scaling: Addresses how the cloud service provider will increase the processing power or speed. Horizontal scaling: Addresses how the cloud service provider will increase the amount of space or storage in the cloud.More
What is the difference between the general ledger and subsidiary ledger?
To fully understand the difference between the general ledger and the subsidiary ledger (i.e. subledger), you need to have a solid understanding of how the general ledger fits into the overall flow of information in accounting records. The general ledger contains all of the debit and credits that have been recorded for transactions incurred by […]More