How to Calculate Return on Assets - What Is ROA?
Return on an asset, or ROA, is a calculation used to measure how much profit a company is earning from it’s assets. It is a straight forward …
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Understanding Working Capital to Total Asset Ratio
Working capital to total asset ratio is one of the most keenly watched financial ratios by investors, business owners, and other stakeholders alike. …
Continue ReadingWhat Is the Difference Between Amortization and Depreciation?
Depreciation is used for tangible assets, such as machinery, computer equipment and buildings. Amortization is used for intangible assets, such as …
Continue ReadingWhat is a Working Capital Cycle?
Companies without adequate levels of working capital find it difficult to survive, but high levels of working capital also denotes financial …
Continue ReadingCan You Run a Business Using the Zero Working Capital Method?
Companies such as General Electric and Campbell Soup have heralded the concept of Zero Working Capital, or operating without working capital. Read on …
Continue ReadingAn Enterprise Must Calculate Depreciation to Reflect the Use of an Asset Over its Economic Life.
Selection of a depreciation method should take into account the reason why depreciation is charged in the accounts. The enterprise should calculate …
Continue ReadingExamples of Target Gross Margins in Different Industries
Target gross margins vary greatly across different industries, depending on a number of factors such as the level of competition in the industry and …
Continue ReadingThe Uses of Moving Average Inventory Cost Method: Explanations and Illustrated Example
We understand the basics of the “moving average inventory cost” method since it’s one of the GAAP-recognized concepts and most POS …
Continue ReadingHow to Determine Accounting: Customer Loyalty Programs
If your business offers rewards or incentives or maybe offers something such as a free service in return for a purchase, you need to consider …
Continue ReadingManufacturing Cycle Efficiency, Calculated: Its Relevance to Cost Accounting
Learning how manufacturing cycle efficiency is calculated is easy if the cycle time values are givens. All you need to do is plug the numbers into the …
Continue ReadingMust-Have Accounting Forecasting Tips - Seasonal Firms
Is your company seasonal? If so, if you only guesstimate on sales and have no understanding of what accounting forecasting for season firms is as far …
Continue ReadingFree Samples of Accounting Schedules & How to Use Them
Most new to the accounting world may not quite understand accounting schedules, their purpose, and why it’s necessary to control these aged schedules. …
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