Dr. Sujit Dutta

EBITDA 1

 Why EBITDA Matters in the Corporate World

2 Comments / Accounting /

Why EBITDA Matters in the Corporate World In today’s competitive business environment, evaluating a company’s true operating performance goes beyond simply looking at its net profit. Investors, lenders, equity analysts, investment bankers, private equity firms, and corporate managers need a measure that reflects how efficiently a business generates earnings from its core operations, independent of […]

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Above-the-line deductions

ABOVE-THE-LINE DEDUCTIONS (ADJUSTMENTS TO INCOME)

1 Comment / US Tax /

A Practical Guide to Reducing Adjusted Gross Income (AGI) Every taxpayer wants to legally reduce their tax liability. One of the most effective ways to accomplish this is by claiming Above-the-Line Deductions (ALDs). Unlike itemized deductions, these deductions are available even if you claim the Standard Deduction. They reduce your Adjusted Gross Income (AGI), which

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Decoding Bad Debts and Provision for Bad Debts (PBD)

Decoding Bad Debts and Provision for Bad Debts (PBD)

4 Comments / Accounting /

In business, credit sales are common, and customers (debtors) become an important asset of the organization. However, not every amount due from customers may be collected in full. Some customers may fail to pay, resulting in Bad Debts. Accounting follows the principles of prudence and accrual, which require businesses to recognize possible losses relating to

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U.S. federal tax deductions

Understanding Tax Deductions in U.S. Federal Taxation

7 Comments / US Tax /

Suppose the government wants to encourage taxpayers to save for retirement, pursue higher education, or pay for medical expenses. Instead of giving cash directly, it often provides tax benefits in the form of deductions. But what exactly is a deduction, and why are some deductions called ‘above-the-line’ while others are ‘below-the-line’? Let’s understand this step

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Depreciation and provision for depreciation

Understanding Depreciation, Provision for Depreciation and Sale of Assets

2 Comments / Indian Direct Tax /

Fixed assets such as machinery, furniture, vehicles and buildings are used by a business for generating income over several years. However, these assets generally lose their value over time due to usage, wear and tear, technological changes or obsolescence. This reduction in value is recognized as Depreciation. Accounting does not treat depreciation as an actual

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Balance sheet 1

Decoding the Balance Sheet: Assets, Liabilities and Owner’s Equity

2 Comments / Accounting /

The journey of accounting does not end with calculating profit. After preparing the Trading Account and the Profit & Loss Account, the next step is to understand what the business owns, what it owes, and what belongs to the owner. This information is presented in the Balance Sheet, one of the most important financial statements.

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Understanding FICA and SECA

8 Comments / US Tax /

Introduction The Federal Insurance Contributions Act (FICA) and the Self-Employment Contributions Act (SECA) are the two primary U.S. laws that finance the nation’s Social Security and Medicare programs. These programs provide financial security and healthcare benefits to eligible retirees, disabled individuals, and surviving family members. Under FICA, employers are required to withhold Social Security and

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International finance case study

Understanding International Finance through an Integrated MNC Case Study

Leave a Comment / International Finance /

Case: Edific Engineering Ltd. (India) Edific Engineering Ltd., an Indian multinational company, exports industrial machinery to customers across the USA, Europe, and Asia. As the company expands globally, it encounters various aspects of international business. International finance encompasses a wide range of interconnected concepts that are best understood through a logical sequence of business events

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US federal income tax

Understanding US Federal Income Tax: A Case Study

Leave a Comment / US Tax /

Reading the Internal Revenue Code or a Form 1040 instruction booklet in the abstract can feel overwhelming — dozens of lines, schedules, and terms like “AGI,” “above-the-line,” and “refundable credit” that don’t mean much until you see them in action. This case study takes a single, realistic taxpayer — John, a salaried employee with some

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