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Reviewed by Erika RasureFact checked by Vikki Velasquez The defining factor between a nonprofit and for-profit organization boils down to IRS code 501(c), which excuses nonprofits from federal tax liability. These qualified charitable organizations face a tradeoff since they must distribute surplus earnings to a social cause. The individuals in a nonprofit possess limited liability about the
Reviewed by Andy SmithFact checked by Suzanne Kvilhaug Nearly all companies are required to prepare their financial statements as set out by the Financial Accounting Standards Board (FASB), whose standards are generally principles-based. FASB uses these principles in establishing its accounting practices and methods. Law requires U.S. companies to adhere to accounting standards when reporting
Michael Saylor isn’t just the chairman of MicroStrategy (NASDAQ:MSTR), he’s also a well-known cheerleader for Bitcoin (BTC-USD). However, Saylor sold more than 1,000 shares of MicroStrategy stock on March 20. MicroStrategy bills itself as the “world’s first Bitcoin development company.” I’m not quite sure if that’s true, but MicroStrategy could certainly claim to be the
Reviewed by Thomas Brock Free Cash Flow vs. Operating Cash Flow: An Overview Free cash flow is the cash that a company generates from its normal business operations after subtracting operating expenses, before interest payments, and after subtracting any money spent on capital expenditures. Capital expenditures, or CAPEX for short, are purchases, upgrades, or maintenance
Reviewed by Chip StapletonFact checked by David Rubin Goodwill vs. Other Intangible Assets: an Overview One of the concepts that can give non-accounting (and even some accounting) business folk a fit is a distinction between goodwill and other intangible assets in a company’s financial statements. Perhaps the confusion is to be expected. After all, goodwill denotes the value
Reviewed by Charles PottersFact checked by Yarilet Perez Counterparty risk is the risk associated with the other party to a financial contract not meeting its obligations. Every derivative trade needs to have a party to take the opposite side. Credit default swaps, a common derivative with counterparty risk, are often traded directly with another party, as opposed to trading
Reviewed by Cierra MurryFact checked by David Rubin Called-Up Share Capital vs. Paid-Up Share Capital: an Overview The difference between called-up share capital and paid-up share capital is that investors have already paid in full for paid-up capital. Called-up capital has not yet been completely paid, though payment has been requested by the issuing entity.
Fact checked by Kirsten Rohrs SchmittReviewed by David Kindness It is possible to buy a penny stock inside an individual retirement account (IRA). Outside of life insurance and collectibles such as artwork and coins, the Internal Revenue Service (IRS) places few limitations on the types of assets an IRA may hold. However, penny stocks are generally