Biofuel production uses carbon-based organic materials, often from plants or organic waste, to create liquids, solids, and gases for various applications. Governments fund research for this renewable resource to reduce dependence on fossil fuels. Plant matter, such as sugarcane or corn, is fermented to produce alcohol-based fuel like ethanol, while plant-produced oils are converted into […]
The Linux® license protects open source software by allowing it to be modified and remodified without legal consequences, but still allows developers to charge for their software. The license requires the source code and the general public license to be included if the software is redistributed. Violators can be sued, and the Linux Foundation offers […]
The rational basis test is used by US judges to determine if a law is constitutional. It is the lowest level of scrutiny and usually favors the legislator. Plaintiffs must prove discrimination and arbitrariness. Legitimate discrimination may cause the test to favor the plaintiff. Rational basis is the scrutiny standard used by judges in the […]
Accrual and cash accounting are two different methods of recording financial transactions. Accrual generates accurate historical records, while cash accounting is easier to use and requires fewer monthly inputs. Companies with $5 million USD in annual sales must switch to accrual accounting. The accrual basis and the cash basis are two different types of accounting […]
Mutual fund cost basis can be calculated using FIFO, specific identification, or average cost methods, but rules vary by country. Loads and fees can be added to the cost basis. No-load funds may still have transaction fees, which are not part of the cost basis unless they are tax deductible. The cost basis of mutual […]
To determine the cost basis of a company’s spinoff, use a formula involving the spinoff and parent company’s stock figures, market price, and distribution ratio. Contact the parent company for the distribution rate. The derived cost basis is essential for investment and selling derivative shares. When a company takes part of its business and breaks […]
A cost allocation basis is a method of allocating costs to specific cost objects, such as projects or departments, in accordance with accounting principles. It can take various forms, and helps identify areas for improvement in operational processes. It can be used by businesses of any size and adapted to different environments. A cost allocation […]
Purchase basis is the difference between revenue from a futures contract and the price of a cash product. Investors use it to determine the best buying approach, based on market conditions and projections. Cash products are physical items, while futures contracts are agreements to buy options at a later date. The investor must decide whether […]
Modified cash basis combines elements of accrual and cash accounting methods. It is a viable compromise that brings together the benefits of both methods while minimizing the drawbacks. It is effective for day-to-day expenses but not for formal financial statements. A modified cash basis is an accounting strategy that combines specific elements of two commonly […]
Cost basis regulations require reporting of the original value of assets at disposal to determine profit or loss for tax purposes. The US government issued more formal rules in 2008, requiring brokers and mutual funds to report cost basis. This generated discussion and critics argued it added to the cost of managing customer accounts. Cost […]
Calculating the cost basis of shares is important for determining the value of each share, capital gains tax, and after a split. Market value is crucial for determining the cost basis, and commissions must be added for realistic calculations. Small and big investors can determine the cost basis by knowing the total investment and number […]
Annual basis is a mathematical technique that extends figures from a period of less than 12 months to cover a complete year, useful for preparing statistics and budgets. Actual figures for a few months are extrapolated to determine the annual figure. It helps businesses avoid financial instability and prepare realistic budgets. The annual basis is […]
