Accounting for Security Deposits

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A security deposit is money paid by the tenant to the landlord. This deposit protects the landlord if the tenant vacates without making required payments or damages the rental property. If the tenant gives proper notice and vacates without owing any rent or damages, the landlord must return the security deposit to the tenant in… Read more »

Fighting Back Against Payday Lenders

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Wisconsin lawmakers agreed on Thursday, April 22, 2010, to regulate payday lenders. Wisconsin had been the only state not to regulate this industry, which consumer advocates said allowed its rapid growth and trapped too many borrowers who take out short-term loans with high interest rates in a cycle of debt. Questions: 1. What were some… Read more »

Late Payments Matter

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Late Payments Matter According to new research, approximately 4,000 small and medium sized firms in the U.K. collapsed in 2008 due to late payments by customers. This amounted to approximately 62 billion pounds that were more than 30 days late and of this 15.5 billion that were more than 120 days overdue. For more than… Read more »

Health Reform and Payments to Doctors

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In September 2009, Merck & Co. Inc. announced that they will be the largest drug company to publish details of payments to doctors. The prescription drug industry has met with growing criticism about its lack of disclosure regarding payments that may influence drug prescribing. As the second-largest U.S. drug company, the company vowed to begin… Read more »

Is the SEC Going to Get Tough On Compliance with Executive Pay Disclosures?

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The SEC revised its disclosure guidelines for executive pay in late 2006. Since that time the regulator has been sending out letters to violator companies with insufficient disclosures, but has seen little compliance. Now the commission indicates that reviews will be tighter and there’s no room for a “Mister Nice Guy” approach. In fact, its… Read more »

Raising funds with Stock Warrants

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The biotechnology firm, Dendreon Corporation, is a company which is developing the prostate cancer drug Provenge. On Friday, November 20, the U.S. Food and Drug Administration (FDA) accepted its application to market the vaccine to treat men with advanced prostrate cancer. If the FDA approves it, the drug would be the first in a new… Read more »

Are Things Improving for Sears Holding Corporation?

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In the third quarter of 2009, Sears Holding Corporation narrowed its losses from $146 million in the previous quarter to $127 million. Despite this, shares of Sears’ stock have almost doubled during 2009. QUESTIONS: The article mentioned that because of inventory management, the company’s gross margin widened by 0.4 percentage points to 27.2%. What are… Read more »

New Rules for Gift Cards

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New rules were announced on November 16, 2009, regarding stricter rules to govern fees and expiration dates for gift cards, gift certificates, and general use pre-paid cards. While the rules have not be enacted and are open for comment for the next month, proposals include the prohibition of dormancy fees for a year and the… Read more »

Timeshare Worries in a Recession

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Marriott International, the well-known hotelier, saw operating losses in its third quarter of 2009, as a result of its venture to move into financing time-shares during a slowing real estate market. In addition, the sluggish economy has not helped its primary business segment that caters to cash-based lodging for business and leisure travelers. As a… Read more »