Accounting

What is Accounting?

Accounting is the recording of financial transactions plus storing, sorting, retrieving, summarizing, and presenting the information in various reports and analyses. Accounting is also a profession consisting of individuals having the formal education to carry out these tasks.

What does Book Value mean?

In Accounting , book value or carrying value is the value of an asset according to its balance sheet account balance. For assets, the value is based on the original cost of the asset less any depreciation, amortization or Impaiment costs made against the asset. Traditionally, a company's book value is its total assets minus intangible assets and liabilities. However, in practice, depending on the source of the calculation, book value may variably include goodwill, intangible assets, or both. When intangible assets and goodwill are explicitly excluded, the metric is often specified to be "tangible book value".In the United Kingdom, the term net asset value may refer to the book value of a company.

What is Assumable Mortgage?

assumable mortgage is a mortgage that may be transferred without changing the terms of the original mortgage. A third party takes over remaining payments on the mortgage and becomes legally responsible for the mortgage terms.

The original mortgage must permit assumption, and in most cases, the bank must approve the assumption as well as the person assuming the mortgage. The buyer will need to show they have sufficient assets and credit worthiness for the bank to approve them. The buyer who is assuming the mortgage may have to pay a fee to the bank for settlement of the transaction.