Bank bailout money is repaid with interest. But the initial profit could disappear if losses from assets the government now owns are sustained.

Wells Fargo has a tough sell to make.

Today’s Big Fun News is all about new accounting rules for banks. Now, we’ve known for years that in personal finance, our situation would be a mess if we used the same rules that the government and corporate America use. However, I do kind of like the idea of having my personal accounting work based on the new rules offered to the banks. All I have to do is say I’m worth as much as I want — as long as I come up with a valuation formula to back me up.
Today the Financial Accounting Standards Board here in the …read more

An asset is defined as something of current or future value owned by the company. Assets are shown on the balance sheet, which gives a snapshot of a company’s financial position at one point in time. Any time a business spends money, they are creating an expense or an asset in the financial statements.
Three characteristics of assets:
In order to be considered a true asset, the following must all be true:

There is probable future benefit that the asset contribute directly or indirectly to future net cash flows, that is it generates revenue for the company. (Or in the case of a non-profit, the …read more

Turn on the news and you’ll see companies everywhere trying to shore up their balance sheets in anticipation of weak sales and reduced access to credit. Adequate working capital is crucial in these tough times to stay in business.
My predecessor, Ren Garcia, has given us a nice portrayal of a business wimp as one without enough working capital. And Randy Meyers at CFO Magazine has warned that the temptation to extend payments is a sign of working capital trouble.
Here’s how to keep an eye on yours!
Working Capital and Related Ratios
Working capital is defined as the amount …read more

I’ve always maintained that accounting is also for business. It’s concepts, relationships among accounts, system of balances are applicable in almost anything in life.
Accounting Solver presents a Balance Sheet for Living:

Health is like cash (in a business Balance Sheet) which you spend on what you have to do and/or want to do. The healthier you are, the more time you can have for family & friends, for yourself, for work; the more you can enjoy Nature (i.e., smell the roses); the better you can earn prestige or a good reputation. The more productive you can be …read more

I’ve always maintained that accounting is also for business. It’s concepts, relationships among accounts, system of balances are applicable in almost anything in life.
Accounting Solver presents a Balance Sheet for Living:

Just like Cash in a business Balance Sheet, Health in the Balance Sheet for Living is much affected by Liabilities. And, the most important item in the Liabilities side of the Balance Sheet for Living is Stress.

Keeping up with the Joneses is a great contributor to Stress. It pushes you into Conspicuous Consumption (e.g., a gas-guzzler luxury car instead of a cost-efficient model, designer clothes, etc) …read more

I’ve always maintained that accounting is also for business. It’s concepts, relationships among accounts, system of balances are applicable in almost anything in life.
Accounting Solver presents a Balance Sheet for Living:
Just like Cash in a business Balance Sheet, Health in the Balance Sheet for Living is much affected by Liabilities. Among the Liabilities in a business Balance Sheet, the major items would be Notes Payable and Accounts Payable. In a Balance Sheet for Living, the major item would be Stress (on the job or from relationships).
Just like Notes Payable and Accounts Payable, Stress cannot be avoided; but they …read more

I’ve always maintained that accounting is also for business. It’s concepts, relationships among accounts, system of balances are applicable in almost anything in life.
Accounting Solver presents a Balance Sheet for Living:

Health is like cash which you spend on what you have to do and/or want to do. The healthier you are, the more time you can have for family & friends, for yourself, for work; the more you can enjoy nature (i.e., smell the roses); the better you can earn prestige or a good reputation.
The healthier you are, the more productive you can be in building up …read more

I’ve always maintained that accounting is also for business. It’s concepts, relationships among accounts, system of balances are applicable in almost anything in life.
Accounting Solver presents a Balance Sheet for Living:

As in any Balance Sheet for business, Equity is what you start out with or put into the business and which constitute your Assets. Following the basic accounting equation: Assets – Liabilities = Equity, after you deduct your Liabilities from your Assets, what is left is what you get out of the business or what you actually own.
It’s the same case in life (or your Balance Sheet …read more