Author: Anfisa Dmitrieva

Such a change in form may occur due to changes in financial structure resulting from the disposition of a long-term liability or asset, or due to a combination of two or more businesses. With the passage of the Sarbanes-Oxley Act of 2002, modifying a…

The rates of change predict the state of the atmosphere a short time into the future. The equations are then applied to this new atmospheric state to find new rates of change, and these new rates of change predict the atmosphere at a yet further time…

Both methods estimate overhead costsrelated to productionand then assign these costs to products based on a cost-driver rate. The differences are in the accuracy and complexity of the two methods. Traditional costing is more simplistic and less accur…

COGS count as a business expense and affect how much profit a company makes on its products, according to The Balance. When a manufacturer sells finished goods inventory, it incurs revenue….

Liquidity will tell you about a firm’s ability to ride out short-term rough patches and solvency tells you about how readily it can cover longer term debt and obligations. Efficiency and profitability say something about its ability to convert inputs…

Sales invoices serve as important data when your business is planning for its future. Sales invoices can offer information on how much revenue you’re bringing in and how your earnings have changed over time. You can also use your sales data to see ho…

The payments you receive will depend on how well your investments perform. Future value is the value of a sum of cash to be paid on a specific date in the future….

For example, a company may pay a sales person a monthly salary (a fixed cost) plus a percentage commission for every unit sold above a certain level (a variable cost). Business owners need to make big accounting decisions on how to handle their costs…

When an investment is publicly traded, market value is readily available. Interested parties can also have a valuation done to estimate market value. Book value is shareholder equity stated on the balance sheet. Equity is found on a company’s balance…

You want to credit a liability account in order to increase it. Prepaid Insurance is an asset and assets are increased with a DEBIT….