It is crucial for you to be aware of the average payable period in order for you to be prepared to take necessary action when the time comes to pay creditors. Evidently, analysts and investors find this ratio useful – the. Read more
However, a service is intangible because it isn’t something that can be touched or stored. For example, Annie needs a repair service for her computer. Although the repair will restore the use of her computer, Annie isn’t purchasing a physical product.. Read more
(vi) Break-even analysis is very helpful for forecasting, long-term planning, growth and stability. Cost, Volume and Profit, which explores the relationship existing amongst Costs, Revenue, Activity Levels and the resulting Profit. There are several actions that could trigger this block including. Read more
Variable costs are commonly designated as the cost of goods sold (COGS), whereas fixed costs are not usually included in COGS. Fluctuations in sales and production levels can affect variable costs if factors such as sales commissions are included in per-unit production. Read more
After entering the end result being solved for (i.e., the net profit of zero), the tool determines the value of the variable (i.e., the number of units that must be sold) that makes the equation true. In effect, the analysis enables. Read more
The seller uses it to record a sales transaction in his sales journal and the buyer uses it to record a purchase transaction in his purchases journal. Creating journal entries for each of your sales is an essential bookkeeping skill. You’ll. Read more
This process includes summarising, analyzing, and reporting various financial transactions. With the help of these transactions, the financial performance of a company can be calculated. Forensic accounting combines accounting, auditing, and investigative skills to examine the finances of an individual or. Read more
You get more money back in tax write-offs early on, which can help offset the cost of buying an asset. If you’ve taken out a loan or a line of credit, that could mean paying off a larger chunk of the. Read more
For example, consider a company with a $100 million book value, mostly in stable real-estate, trading at a P/B of 0.95. Value investors see a $5 million undervaluation relative to book value that they believe will be corrected for over time.. Read more
The stock dividend rewards shareholders without reducing the company’s cash balance. When the small stock dividend is declared, the market price of $5 per share is used to assign the value to the dividend as $250,000 (500,000 x 10% x $5).. Read more