What is Proof of Funds (POF)? Proof of Funds (POF) is a letter or documentation that certifies that an individual, institution, or corporation has sufficient funds (money) to complete a transaction. A POF is typically issued by a commercial bank or custody agent to provide confidence or assurance to another party – typically a seller…
Everything You Need to Know About Cyber Monday Cyber Monday can be thought of as the online equivalent of Black Friday, which is a worldwide sales event that is notorious for its steep discounts and gigantic crowds. The event is observed the Monday following the U.S. Thanksgiving holiday in late November. In 2017 alone, the…
What is the AIDA Model in Marketing? The AIDA Model, which stands for Attention, Interest, Desire, and Action model, is an advertising effect model that identifies the stages that an individual goes through during the process of purchasing a product or service. The AIDA model is commonly used in digital marketing, sales strategies, and public…
What is a Non-Solicitation Agreement? A non-solicitation agreement is a contract that restricts an individual (typically a former employee) from soliciting employees or customers after the employee’s departure from a business. A non-solicitation agreement can be in the form of an entire document or a clause in an employment contract. Non-Solicitation Example Before John’s employment,…
Top 10 Accounting Scandals in the Past Decades The last two decades saw some of the worst accounting scandals in history. Billions of dollars were lost as a result of the said financial disasters, which destroyed companies and ruined people’s lives. Many of these accounting scandals were a result of the excessive greed of a…
What is Indemnification? Indemnification is a legal agreement by one party to hold another party blameless – not liable – for potential losses or damages. It is similar to a liability waiver but is usually more specific, applicable only to particular items, circumstances, or situations, or in regard to a particular contract. Black’s Law Dictionary…
What is the Quality of Accounts Receivable? The quality of accounts receivable is the likelihood that the cash flows that are owed to a company in the form of receivables are going to be collected. Analyzing the quality of accounts receivables for a company is important in assessing its financial health. Understanding Accounts Receivables Accounts…
What is the Nonaccrual Experience Method (NAE)? The nonaccrual experience method (NAE) is a tax accounting procedure that the Internal Revenue Code (IRC) uses for handling bad debts. The procedure can only be applied to bad debts for services that were performed in a few select professions. Also, the company that the NAE method is…
What is a Capitalized Cost? A capitalized cost is a cost that is incurred from the purchase of a fixed asset that is expected to directly produce an economic benefit beyond one year or a company’s normal operating cycle. Types of Costs In accrual-based accounting, there are two ways of classifying costs: 1. Capitalized costs…
What is Voluntary Life Insurance? Voluntary life insurance is a financial security and protection policy that provides a cash payout to a beneficiary or beneficiaries upon the death of the policyholder who is insured. It represents an optional benefit that is offered by employers to their employees as part of a comprehensive group life and…
