Introduction to Leveraging Property for Loans Understanding the Basics of Collateral Collateral is a borrower’s pledge of specific property to a lender, to secure repayment of a loan. The collateral serves as protection for a lender against a borrower’s default—that is if the borrower fails to pay the principal and interest under the terms of…
Kick-Off: Understanding Federal Income Tax An Overview of Federal Income Taxes For anyone earning income in the U. S., keeping track of the federal personal income tax – including the ever-so-important tax deadline – is an unavoidable reality. Administered by the Internal Revenue Service (IRS), federal income tax serves as the largest source of revenue…
The Basics of Credit Card Debt and Bankruptcy Defining Credit Card Debt Accumulating debt on your credit card is akin to taking a loan from your card’s issuer which is instantly used to make purchases. This type of debt falls under the umbrella of unsecured debt, signifying that there is no collateral to secure the…
Why Hire an Accountant for Tax Preparation? Whether for personal finances or business-related matters, hiring an accountant for tax preparation has numerous benefits. This decision can not only make tax season less stressful but can also provide an array of additional financial services. In the bigger picture, hiring an accountant is an investment worth making….
What is collateralization? Collateralization is using a valuable asset as collateral to secure a loan. In this type of loan arrangement, the borrower pledges an asset to the lender, and in case of a loan default, the lender has the right to take possession of the asset and sell it to recover the loan’s outstanding…
What is amortization? Amortization is an accounting technique used to spread out the cost or value of an asset, such as a loan or an intangible asset, over time. It is a process of paying off a debt through regular installments of principal and interest, which are predetermined. The payments usually remain the same throughout…
What is a business debit card? A debit card for business is a form of payment that allows users to make purchases at point-of-sale using their business checking account or savings account. A debit card is linked directly to the user’s business checking account or savings account, which is then converted into cash. Business debit…
A Comprehensive Guide to Forensic Accounting Forensic accounting is the application of specialized investigation and accounting techniques to collect, analyze and present evidence of a potential financial crime. The term ‘forensic’ is suitable for use in a court of law, and this aspect differentiates forensic accounting from other types of corporate investigations. Solicitors or barristers…
What is a management accountant? What is CMA? A management accountant with a CMA certification who passed the CMA exam licensure is a professional who helps to make well-informed financial decisions for an organization. They contribute to the organization’s well-being by providing accurate and up-to-date financial data. For example, a management accountant may be responsible…
What is loan principal? When you get a loan, the money you borrow is called the principal. The principal is the amount of money that you owe to the lender. In addition to paying back the principal, you will also have to pay interest on the loan. The interest is what the lender charges for…
