Author: Anfisa Dmitrieva

Accounts payable are the opposite of accounts receivable, which are current assets that include money owed to the company. On the balance sheet, current assets are normally displayed in order of liquidity; that is, the items that are most likely to b…

A limited liability company, or LLC, is a legal structure that provides businesses run by single owners or partnerships with increased legal and personal asset protections. Any small business can organize as an LLC, which can give owners different op…

In the post-war years, many industries applied it in their daily planning. Objective function is defined as the variable that a person is attempting in order to provide the solutions of the linear programming problems. On the other hand, restraint fu…

Limited liability organization owners receive tax deductions and lower reported income for business losses. Limited liability is a type of legal structure for an organization where a corporate loss will not exceed the amount invested in a partnership…

LIFO is more difficult to maintain than FIFO because it can result in older inventory never being shipped or sold. LIFO also results in more complex records and accounting practices because the unsold inventory costs do not leave the accounting syste…

The LIFO reserve is a contra-asset or asset reduction account that companies use to adjust downward the cost of inventory carried at FIFO to LIFO. Many companies use dollarvalue LIFO, since this method applies inflation factors to “inventory pools” r…

The accounting equation is a representation of how these three important components are associated with each other. The accounting equation is also called the basic accounting equation or the balance sheet equation. The accounting equation shows on a…

Employment of fixed cost bearing assets in the company’s operations is known as Operating Leverage. Employment of fixed financial charges bearing funds in a company’s capital structure is known as Financial Leverage. The impact of leverage is measure…

The lease agreement is a contract between the lessor vs lessee for the use of the asset or property. It outlines the terms of the contract and sets the legal obligations associated with the use of the asset. Both parties are signatories to the agreem…

In addition, the lessor receives payment from the lessee in exchange for the usage of the asset or property. Essentially, a finance lease is one where the lessor purchases the asset for a lessee and rents it to them over a defined period. The lessee …