Explaining Accrued Expense Standards for Accounts Preparation
Financial statements are normally put together on an accruals basis; meaning that all expenses of an accounting period are matched with the income …
Continue ReadingShowing items from finance
Investors Should Know the Limitations of Consolidated Financial Statements
Large amounts of information are available for investors and other stakeholders, from the consolidated financial statements of a group of companies. …
Continue ReadingLearning How To Read Financial Statements: Your Working Capital
Business owners and managers should learn to analyze and interpret their financial statements. You don’t need to know anything about the …
Continue ReadingRatio Analysis of Financial Statements
Ratio analysis is an important tool for users of financial statements to extract useful information. Ratio analysis of financial statements may assist …
Continue ReadingThe Age-Life Method of Depreciation Explained: Examples Included
The age-life method of depreciation determines the effective age of an asset for the purposes of calculating depreciation. The effective age differs …
Continue ReadingUsing Estimation Techniques to Determine Mixed Costs
Mixed costs or semi-variable costs, are types of cost that have a fixed element and a variable element. Enterprises find it useful to employ …
Continue ReadingWhat are the Different Costing Systems for Various Types of Business
Different costing systems may be used depending on the type of product or service being produced, and the company’s policy with respect to which …
Continue ReadingHow Companies Use Activity-Based Costing: Help Management Understand the Real Cost of Products
To understand how companies use activity based costing, it is necessary to see how the expenses incurred by the enterprise can be allocated to the …
Continue ReadingLearn How to Calculate Working Capital
Working capital is current assets minus current liabilities. It denotes the cash available for an enterprise for day-to-day operations such as payment …
Continue ReadingHow Does Return on Equity for Capital Investments Help Investors?
Return on equity and its variant, return on capital, ranks among the most popular profitability ratio. But does it provide a complete picture to an …
Continue ReadingTrust Accounting Basics Explained
The trustees have a duty of care towards the beneficiaries of the trust, and must conform to legal and tax requirements relating to the trust. To …
Continue ReadingUnderstanding Return on Assets Ratio
Ratio analysis sheds light on the financial status of a company, and it allows meaningful interpretations of figures contained in financial …
Continue Reading