Business Accounting Blog

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…

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…

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 …

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,…

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….

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…

There are two types of credit memos that one can come across:…

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…

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…

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…