Bookkeeping

By separating each account by several numbers, many new accounts can be added between any two while maintaining the logical order. If the net realizable value of the inventory is less than the actual cost of the inventory, it is often necessary to reduce the inventory amount. Sign up to receive more well-researched accounting articles […]

Our platform allows you to automate data inputs from most major providers to avoid common mistakes. We partner with merchants like Gusto, Stripe, Shopify, and Square—so your finances are always accurate. We have long-term relationships with our business clients which has allowed us to expand our experience and gain specialized knowledge in a variety of

In the Accounts Payable account, the $2,290 payment goes on the left (debit) side of the account because the liability is decreasing. In the Rent Expense account, the $8,300 deposit goes on the left (debit) side of the account because the expense is increasing. Entry #4 — PGS purchases $50,000 worth of inventory to sell

The budgeted price is usually based on standard cost – what your company expects to pay per unit of material. Picture this—your direct materials end up costing more than expected, but you’re not sure why or by how much. That’s where understanding and computing the price variance becomes essential. Implementing Quality Control Measures As discussed

In general, a lower D/E ratio is preferred as it indicates less debt on a company’s balance sheet. However, this will also vary depending on the stage of the company’s growth and its industry sector. D/E ratios should always be considered on a relative basis compared to industry peers or to the same company at

The cash flow coverage ratio is a metric that signifies a company’s liquidity by comparing the operating cash flow and its overall debt obligation. Simply put, it reflects how a business or company uses cash flow from its operating activities to cover its outstanding debt obligation. Using this in conjunction with other financial calculations, such

The premium or the discount on bonds payable that has not yet been amortized to interest expense will be reported immediately after the par value of the bonds in the liabilities section of the balance sheet. Generally, if the bonds are not maturing within one year of the balance sheet date, the amounts will be

It not only helps in evaluating liquidity, solvency, and financial health but also aids in long-term financial planning and risk assessment. For businesses, investors, and financial analysts alike, a well-prepared classified balance sheet serves as a vital instrument in achieving financial clarity and sustainability. A classified balance sheet is a financial statement that organizes a

The principles provide a framework for ensuring that financial reporting is orderly, consistent, transparent, and reliable so that one can rely on financial reporting. They provide 5 accounting principles accountants with the framework for producing reliable and useful information in the form of statements to guide decision-making. Accounting principles are defined rules that ensure businesses

Below is a break down of subject weightings in the FMVA® financial analyst program. As you can see there is a heavy focus on financial modeling, finance, Excel, business valuation, budgeting/forecasting, PowerPoint presentations, accounting and business strategy. This is an example of overhead absorptionfor the interorganization transfer receipt of a standard costed item. Suppose a