What are the Disadvantages of Activity-Based Budgeting?
Activity-Based Budgeting (ABB) enhances the accuracy of financial forecasts and increases management understanding of the business. Read on to find …
Continue ReadingShowing items from finance
What Is the Gross Margin Formula? Explaining With Examples
The gross margin is a key indicator used to measure financial performance before the end of the accounting cycle, so any necessary business …
Continue ReadingExplaining the Equity Method of Accounting for Investments With Examples
If you want to more closely monitor the profitability of investments, you may want to switch over to using the equity method. We’ll take a closer look …
Continue ReadingIFRS Accounting for Fixed Assets: How Do They Contribute to a Company's Profitability?
Fixed Assets! Hench Apparel just purchased a computer package amounting to $800,000 the other month, and Hench has this entered below the standard …
Continue ReadingSignificance of Calculating EBIT in Credit Risk Analysis
Calculating EBIT is as simple as calculating for net profits before the corresponding income tax provision is applied. This article explains not only …
Continue ReadingCategories of Adjusting Entries: Bringing Accuracy to Financial Statements Figures
“Adjusting entries? You still have to work on those before presenting the financial statements, Miss Lopez? Are those really so difficult that …
Continue ReadingSave Time With Free Operating Budget Templates
You recognize the value of putting together an operating budget. But how do you get started? Figuring out the structure of the budget can be more time …
Continue ReadingExplaining Accounts Receivable Factoring: Recourse & Non-Recourse Factoring
When companies think of using accounts receivable factoring, they must be aware of the pros and cons of both recourse and non-recourse factoring. …
Continue ReadingExplaining Adjusting Entries: Examples, Accounting Assumptions & Principles Necessitating Their Use
Before financial statements are created, it’s important to make sure that the information used to build those statements is as accurate as possible. …
Continue ReadingLearn Simple Examples of Calculating Fixed and Variable Costs
Assets, liabilities, and costs—both fixed and variable are all key elements of the financial accounting of your business. Why are some costs fixed …
Continue ReadingWhat Is Gross Profit?
In this article we define gross profit, explain how is it calculated, and identify where you can find it in financial reports.
Continue ReadingA Guide to Typical Examples of Operating Budgets
Operating budgets come in a variety of shapes and sizes. Examples of operating budgets include anything from the very detailed and complex to the …
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