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Category Archives: Accounting

Misunderstanding profit

When it comes to business reports, the concept of profit has to be one of the most misinterpreted items on a company’s balance sheet. What is it, what does any particular number mean, and why are some companies posting insane profit numbers while not “sharing the wealth”? Well let’s get into this. Now “profit” is […]

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Why are forgiven debts treated as income?

Why are forgiven debts treated as income? After all it doesn’t really make sense: you don’t actually receive any money when debts are written off, but the IRS may require you to report it anyway. There are a lot of articles on the Internet that tell you that canceled and forgiven debts are considered income, […]

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