What Information Liquidity Ratios Provide: Calculation Tips with Examples
Understanding what information liquidity ratios provide is important to the business owner and investor. This article shows how to calculate three …
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A Guide to Non-Cash Charitable Donations - Determining Value
Charitable contributions are an allowed itemized deduction for your federal tax return that can help reduce your tax liability. In the event of an …
Continue ReadingTaxation Principles on Phantom Income: Examples and Explanation
What is phantom income, who is liable to pay it, and what are some examples?
Continue ReadingWhat is Treasury Stock? Implications for the Company and Shareholders
Why would a company repurchase its own stock? What is treasury stock? More importantly, how does it impact the investor and the company’s bottom …
Continue ReadingDefining Intangible Non-Current Assets & How They're Valued
In this article we define non current intangible assets, look at some examples, and explain why they appear on balance sheets. Learn why items like …
Continue ReadingInventory Financing: What Are the Pros and Cons?
When cash is tight, looking into a small business loan starts to sound more and more appealing to purchase needed inventory. Collateral is always a …
Continue ReadingSample Statement of Retained Earnings: Free Download with Explanation
Never heard of a retained earnings report? This small statement is one of the four basic financial statements typically found in a company’s …
Continue ReadingAllowance for Doubtful Accounts: Examples of its Significance for Decision Making
This article features a valuation tool called Allowance for Doubtful Accounts. Examples and explanations provided dwell on the use and significance of …
Continue ReadingHow to Calculate Retained Earnings: Formula & Explanation
In addition to explaining the basic formula used to calculate retained earnings, we’ll also look at the various advantages of not distributing all of …
Continue ReadingLearn About Periodic and Perpetual Inventory Systems
Every business that sells goods should have a method for valuing inventory in place. Two forms of business inventory valuation are the periodic …
Continue ReadingExamples of Multiple-Step Income Statements: When Should You Use One?
Our examples of Multiple-Step Income Statements illustrate how the format differs from the Single-Step style for revenue and expense reporting …
Continue ReadingFree Income Statement Template: Examples & Guidelines for Single-Step Format
Provided in this article is a free Income Statement template in the Single-Step format, often used for businesses employing basic income and expense …
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