Since the inventory values vary across industries, it’s a good idea to find an industry average and then compare acid test ratios against for the business concerned against that average. The quick ratio (also sometimes called the acid-test ratio) is a more conservative version of the current ratio. Your ability to pay them is called “liquidity,” and liquidity is one of the first things that accountants and investors will look at when assessing the health of your business. In t […]
The accounts receivable by sales ratio can be monitored over time to evaluate changing sales patterns or to assess the effectiveness of accounts receivable management. This information may be different than what you see when you visit a financial institution, service provider or specific product’s site. All financial products, shopping products and services are presented without warranty.
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Inventory analysis is the study of how product demand changes over time. This analysis helps businesses stock the right amount of goods and project how much customers will want in the future. The two methods of recording inventory are periodic and perpetual. In periodic inventory, you count stock at specific times and add the totals to the general ledger. In the perpetual method, you record changes in stock as they occur. Understanding the different types of inventory is essential for making so […]
Face value can also apply to preferred stock, where the amount stated on a stock certificate is used to calculate the percentage dividend paid to investors. For example, a $1,000 face value on a preferred stock certificate, when combined with a 7% dividend payment, means that $70 will be paid each year in dividends. After one more month passes, Brisbane makes the first interest payment of $12,000. However, interest expense of only $2,000 is actually recognized in the entry below. That is the ap […]
The Internal Revenue Service announced it will start to automatically correct tax returns for those who filed for unemployment in 2020 and qualify for the $10,200 tax break. On March 11, President Joe Biden signed his $1.9 trillion American Rescue Plan into law which includes a tax break on up to $10,200 of unemployment benefits earned in 2020. Only available for returns not prepared by H&R Block. Any excessive passive income loss can be accrued until used or deducted in the (more…) […]
Indirect selling expenses are expenses that cannot be directly linked to the sale of specific products, for example telephone expenses, Internet, and postal charges. General and administrative expenses include salaries of non-sales personnel, rent, utilities, communication, etc. The “bottom line” of an income statement—often, literally the last line of the statement—is the net income that is calculated after subtracting the expenses from revenue. It is important to investors as it r […]
If a government building was damaged, the cost of repair would be met from public funds because, in the long run, this was cheaper than paying insurance premiums. Since many UK government buildings have been sold to property companies and rented back, this arrangement is now less common. Travel insurance is an insurance cover taken by those who travel abroad, which covers certain losses such as medical expenses, loss of personal belongings, travel delay, and personal liabilities. Professional l […]
Enter the relevant information in the given sections, so you know why you made the journal entry. If we transfer money from a liability or asset or equity account to an expense and income account.
Dancing Numbers is SaaS-based software that is easy to integrate with any QuickBooks account. With the help of this software, you can import, export, as well as erase lists and transactions from the Company files. You do not have to bill your customer or worry about collecting overdue amounts. (more& […]
The more precise accrual accounting method has you record transactions when you earn revenue and incur expenses, not necessarily when cash flows. The term payroll accrual often refers to the wages earned by employees that are not yet paid. Accruing a bonus means including payments for any cash bonus, paid time-off, or other extra wage-related payments you expect to make at the end of the pay period. Bonus accruals can be a risky proposition, as they require the employer to be quite certain ahea […]
These vary in complexity, so you need to understand the differences before you go with one site or another. They ask how many of each product you have in inventory when you create a record and at what point you should be alerted to re-order. Then they actually track inventory levels, which provides insights on selling patterns and keeps you from running low. Most small business accounting sites offer the option to import existing lists in formats such as CSV and XLS. (more…) […]
