Bookkeeping 101

The time derivative estimate (per day) is the MACD value divided by 14. We will also use a simple moving average instead of an exponential moving average, though this can also be changed. The 10-period SMA will be our “fast” moving average, as it wil…

The balance in the accounts receivable account is comprised of all unpaid receivables. This typically means that the account balance includes unpaid invoice balances from both the current and prior periods. Conversely, the amount of revenue reported …

With regard to investment real estate, however, the term, “Net Operating Income” is a minor variation on this theme and has a very specific meaning. By more formal definition, it is a property’s Gross Operating Income less the sum of all operating ex…

If you get behind on payments, the lender can take over your home in a process known as foreclosure. The lender then sells the home, often at an auction, to recoup its money. The original lender must be paid off in full before subsequent lenders rece…

Investors purchase securitiesbacked by the value of the home loans—so-calledmortgage-backed securities. When Treasury yields rise, investors in mortgage-backed securities demand higher rates. Ultimately, the mortgage-backed securities industry provid…

Other current assets are included in the calculation of a company’s current ratio. The current ratio shows how well a company can cover its current liabilities with its current assets. Current ratio assets include inventory which is not as liquid as …

There’s no monthly service fee, and only a $100 deposit is required to open an account. Account extras include higher interest rates on linked savings accounts and CDs, as well as fee waivers on selected services, including wire transfers and foreign…

In some schools, students are required to give a lecture for one or both of the recitals, in which they explain the historical context or music theory or compositional issues involved in the pieces. This approach, called a lecture-recital, is designe…

If the bicycle company produced 10 bikes, its total costs would be $1,000 fixed plus $2,000 variable equals $3,000, or $300 per unit. Although fixed costs do not vary with changes in production or sales volume, they may change over time….

The insurance company’s liability is probably just $156,000, which is the amount of cost associated with the ending Finished Goods inventory as shown in part above. The relevant measure of activity for a steel company is probably the volume of steel …