Author: Anfisa Dmitrieva

Net income is the portion of a company’s revenues that remains after it pays all expenses. Owner’s equity is the difference between the company’s assets and liabilities. It is the owner’s share of the proceeds if you were to liquidate the company tod…

Both the current and quick ratios help with the analysis of a company’s financial solvency and management of its current liabilities. Examples of current liabilities include accounts payable, short-term debt, dividends, and notes payable as well as i…

Also, there may be production-related expenses (such as facility rent) even when there is no production at all, as would be the case when there is a union walkout. In these cases, it is possible for there to be a cost of goods sold expense even in th…

If it’s coming from normal business operations, that’s a sign of a good investment. If the company is consistently issuing new stock or taking out debt, it might be an unattractive investment opportunity. The company engaged in a number of financing …

Cash flow from financing activities (CFF) is a section of a company’s cash flow statement, which shows the net flows of cash that are used to fund the company. Financing activities include transactions involving debt, equity, and dividends….

Your account books don’t always reflect the real-world value of your business assets. The carrying value of an asset is the figure you record in your ledger and on your company’s balance sheet. The carrying amount is the original cost adjusted for fa…

Net book value is the amount at which an organization records an asset in its accounting records. Net book value is calculated as the original cost of an asset, minus any accumulated depreciation, accumulated depletion, accumulated amortization, and …

The net income applicable to common shares figure on an income statement is the bottom-line profit belonging to the common stockholders, who are the ultimate owners, a company reported during the period being measured. (To get the basic earnings per …

Which of the following statements is not correct with respect to contributions to a private not-for-profit? A) Contributions to a not-for-profit are recorded at fair market value at the date of receipt….

It’s debit balance will reduce the owner’s capital account balance and the owner’s equity. The drawing account’s purpose is to report separately the owner’s draws during each accounting year. Since the capital account and owner’s equity accounts are …