What is Cash Basis Accounting? The cash method is used by individuals. The substantial difference lies in the time period to which costs and revenues are attributed. The US tax period is one year with a pre-determined beginning and end date. Most individuals and companies have a January 1 to December 31 tax year. Some companies choose an alternative...

What is a Book of Original Entry? A book of original entry refers to an accounting book or journal where all transactions are initially recorded. This book can also be called a first entry or preliminary entry. It is the journal in which invoices, vouchers, cash transactions and others are first recorded before they are transferred to ledger account...

Slide 10: Financial Forecast The financial forecast is a snapshot of the most important aspects of the financial statements. Take a look back at the Financial Projections material to refresh yourself on the content of the financial projections. The main information that you should show in the financial projections are are follows: Revenue assumption...

How do you assess the Social Context when strategically planning a negotiation? A negotiator must understand the social context of the negotiation.  Negotiation occurs in a context of rules, such as customs, habits, situations, cultural norms, religious doctrine, laws, and political pressures.  Understanding the social constraints on the negotiation...

What is Communicated in a Negotiation? A negotiator communicates her preferences during a negotiation. Selectively relaying preferences can have a powerful influence on the actions of the other party and on outcomes.  A communicative framework for negotiation assumes that the communication of offers is a dynamic process; the process is interactive; ...

What is a Quality or New Goods Bias? The other major problem in using a fixed basket of goods as the basis for calculating inflation is how to deal with the arrival of improved versions of older goods or altogether new goods.  Ideally, one would like to know how much of the higher price is due to the quality change, and how much of it is just a high...

What is acceptance of an offer? Acceptance of a contract is the assent of the offeree to the demands contained in the offerors offer. Acceptance of the contract varies depending upon whether the contract is unilateral or bilateral. An offeree accepts a bilateral contract by making the return promise demanded by the offeror. An offeree accepts a unil...

What is Boot for Tax? In business, boot refers to a situation in the exchange market whereby an item, property or money is added to an exchange to make the value of traded goods exact. When cash is added to an exchange to equate the value of the traded goods, it is called cash boot. In the United States, there are certain regulations of boot stated ...

What is a Cash Allowance? Employees of companies are entitled to certain allowances to cater for expenses such as travel expenses, accommodation, wardrobe, medical expenses, and others. When a company pays out such allowance in cash rather than reimburse them at a later date, it is an instance of the cash allowance. A cash allowance is paid out on c...

What is a Junior Capital Pool? A junior capital pool (JCP) is a corporate structure that allows a company to issue its shares or stock options to the public before going into an actual business. JCP also refers to a company that engages in such an act. When a company goes public (issues stock options) before having an operational business structure,...