Debit Memo: What is it and how to use it?

 Posted on Posted on: 02.09.2021 Modified on: 11.01.2022Categories Business Accounting Blog  Leave a comment on Debit Memo: What is it and how to use it?

It is easy to remember the meaning of the term debit memo because it has the word debit in it, which just means the amount on the left-hand side of a ledger (when there is no other meaning to the debit). When it comes to the whole phase debit memo, i…

What Is Accrued Interest 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 Is Accrued Interest and How to Calculate It?

Simply put, when you have interest on a loan, you are getting charged based on the principal. When it accrues and you are not paying on the loan, that means it is accumulating. Thus, the word accrue simply means accumulate and accrued interest can be…

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 …

Flexible Budget: Basics and Advantages

 Posted on Posted on: 02.09.2021 Modified on: 11.01.2022Categories Business Accounting Blog  Leave a comment on Flexible Budget: Basics and Advantages

Theoretically, budgeting is the process of planning various kinds of asset transactions. In its simplest form, this means planning cash receipts and payments. Depending on the degree of adaptability, there are three types of budgets: flexible, fixed,…

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….

What is a Sales Journal needed for?

 Posted on Posted on: 26.08.2021 Modified on: 11.01.2022Categories Business Accounting Blog  Leave a comment on What is a Sales Journal needed for?

A Sales journal is one of these entry lists. It’s one of the most important of the bunch, seeing how it records sales transactions throughout the company’s life. Unlike many other journals that end up being sources of information for the Balance shee…

Simple Explanation of Standard Costing Basics

 Posted on Posted on: 02.07.2021 Modified on: 11.01.2022Categories Business Accounting Blog  Leave a comment on Simple Explanation of Standard Costing Basics

The efficiency of the cost management system of the enterprise influences the efficiency of the entire management system of the company and its competitiveness in the market. Currently, the standard costing management system has been used by some com…

Learn How to Calculate Sales Tax

 Posted on Posted on: 01.07.2021 Modified on: 11.01.2022Categories Business Accounting Blog  Leave a comment on Learn How to Calculate Sales Tax

If the purchase is made at a brick-and-mortar store, funds go to the state of the physical location of the outlet. If the goods are ordered online, then the money will go to the state in which the person receives the package. The good news is that sa…

Vertical Analysis of Financial Statements

 Posted on Posted on: 30.06.2021 Modified on: 11.01.2022Categories Business Accounting Blog  Leave a comment on Vertical Analysis of Financial Statements

As you know, vertical means up and down. The vertical analysis compares all items up and down in a column. In other words, it compares each item with the base value, which is presented as 100%. Accordingly, the sum of all items as a percentage is als…