An adjunct account increases the valuation of a liability account. An adjunct account is commonly used when accounting for a bond issue sold at a premium.
The par value of the bonds sold is included in one line as a credit to Bonds Payable, and the increased premium in placed in another line as a credit to Premium on Bonds payable. The technical term for the account into which a discounted bond’s discount is placed is a Contra Account.
Contra Accounts lower rather than raise the value of the assets they are associated with. Some people group these together as adjunct accounts, or more suitably as valuation accounts. The word “adjunct” means to add to something else as a supplement.
It essentially is there to bring the books into order if the value of something changes from its carrying amount, which is the amount of worth already assigned to something on the books. Accrued depreciation is another example of a valuation account.
In short, a bubble forms when investors start bidding up the price of an asset well beyond its intrinsic value
An old saying stipulates that you should sell your positions on Rosh Hashanah, and establish a new position on Yom Kippur
Benchmark indices are used to gauge the performance of an investment portfolio
All-cap mutual funds invest in companies of all sizes. All-capitalization mutual funds invest in companies without a...
An IRA already provides the investor with tax-deferred growth, so an annuity will not provide any additional tax benefits
Some institutions will not allow you to open a self-employed 401(k) if you have more than one owner in the business
Yes, generally speaking any person that has assets and liabilities needs a will. In the absence of a will, a deceased...
In the financial markets, “Ask” is the price that a seller is willing to accept for a security. It is also known as...
A strangle is an options strategy which is profitable if the price of the underlying security swings either up or down
Accelerated amortization is the recalculation of an amortization schedule, after the borrower pays off some of the debt