Author: Anfisa Dmitrieva

This may also be handled on a separate spreadsheet through a manual consolidation process. This can require a significant amount of additional research work. Subledgers are only used when there is a large volume of transaction activity in a certain accounting area, such as inventory, accounts payable, or sales. This article is not intended to … Continue reading “Posting to the General Ledger Accounting 101”

The net present value (NPV) of a series of unequal payments made at regular intervals, assuming a fixed interest rate per interval. Suppose $100 (PV) is invested in a savings account that pays 10% interest (I/Y) per year. This $110 is equal to the original principal of $100 plus $10 in interest. $110 is the … Continue reading “Basic Financial Calculator Atlantic Federal Credit Union”

It is one of the reasons why companies are stubborn to cut their dividend, as doing so signals that management has not been able to run the company efficiently. As a result, investors can lose faith in the company, sinking the price of the stock even further. There are even times when investors should ignore … Continue reading “What Is a Dividend Payout Ratio?”

Rather than asking employees to perform constant record-keeping, firms had more productive tasks for their workers. “The fulfillment network we switched to appeared to have a solution to this by automatically calculating that figure and syncing directly with the product page. The last in, first out (LIFO) method means you sell your newest purchased or … Continue reading “What is a Perpetual Inventory System? Definition & Advantages”

Accounts payable most commonly operates as a credit balance because it is money owed to suppliers. However, it can also operate as a debit once the money is paid to the vendor. An aging schedule separates accounts payable balances, based on the number of days since the invoice was issued. Acme Manufacturing, for example, has … Continue reading “Accounts Payable Definition, Turnover, Reducing”

Remember, common and preferred stock are reported at their original amounts and only changed if there are new issuances. Businesses raise paid-in capital with new issuances of common and preferred stock. They can reduce it through treasury stock, which is when a company buys back its own shares. Par value is a nominal amount (usually … Continue reading “Paid-in capital Wikipedia”

Traders who look for short-term gains may also prefer getting dividend payments that offer instant gains. Dividends are paid out from profits, and so reduce retained earnings for the company. The statement of retained earnings (retained earnings statement) is a financial statement that outlines the changes in retained earnings for a company over a specified … Continue reading “How to Prepare a Statement of Retained Earnings”

After all, an OEM product is the same product manufactured by the original manufacturer. Though there are cheaper versions, the price of the OEM product reflects its quality. Hardware can be easily bought off the internet, whether from a retail product manufacturer or through an OEM. However, OEM hardware is usually shipped incomplete of parts … Continue reading “OEM Meaning Everything You Should Know in China Sourcing”

Henry Ford did not like the constant stream of model-year changes because he clung to an engineer’s notions of simplicity, economies of scale, and design integrity. GM surpassed Ford’s sales in 1931 and became the dominant company in the industry thereafter. The frequent design changes also made it necessary to use a body-on-frame structure rather … Continue reading “Obsolescence Definition & Meaning”

Widespread disagreement does not, however, indicate that there is no objective fact to be known. There are many examples of widespread disagreement regarding facts that are clearly objective. For example, there was once widespread disagreement about whether the universe is expanding or in a “steady state.” That disagreement did not indicate that there is no … Continue reading “OBJECTIVITY English meaning”