What Does Times Interest Earned Ratio Mean and How to Calculate It?

 Posted on Posted on: 02.09.2021 Modified on: 11.01.2022Categories Business Accounting Blog  Leave a comment on What Does Times Interest Earned Ratio Mean and How to Calculate It?

You can see the formula for computing this ratio above. Let’s use it to find the interest coverage ratio for Leaf Company. The business owner wants to buy new equipment and for this, she needs to apply for a loan. Not surprisingly, the bank looks at …

Learn to Calculate Depreciation Using Units of Production Method

 Posted on Posted on: 02.09.2021 Modified on: 11.01.2022Categories Business Accounting Blog  Leave a comment on Learn to Calculate Depreciation Using Units of Production Method

This method is based on the assumption that the actual income received from the usage of the relevant asset in each reporting period is associated with the release of units of products produced with its involvement in these accounting periods….