Why is GAAP Important to Every Financial Statement User?
In order to understand why GAAP is important, some readers may find it necessary to know why it was established in the first place. Considering that …
Continue ReadingShowing items from finance
What Is the Definition of Net Tangible Assets Ratio?
The definition of net tangible assets ratio is total tangible assets of the company less all liabilities divided by the number of ordinary shares. …
Continue ReadingComparing Inventory Costing Methods: FIFO, LIFO and Average Cost
Understanding the different inventory costing methods is important in assigning costs to the goods physically counted as ending inventory at the close …
Continue ReadingT Accounts: Examples & How They're Used
These examples of T accounts show how the accounting tools are used to figure out the effects of multiple accounting entries involving related …
Continue ReadingThe Cost of Goods Sold Formula: Understanding COGS and Its Sub-Components
While the basic Cost of Goods Sold (COGS) formula looks fairly straightforward, the real work is in determining the beginning and end inventory …
Continue ReadingUse of T Accounts and Templates for T Accounts: Learn How to Create Your Own
This article provides a tutorial on how to create templates for T accounts to complete the learner’s appreciation of this accounting tool. T accounts …
Continue ReadingAn Overview Sales to Fixed Assets Ratio: Calculation Methods & Examples
The sales to fixed assets ratio or asset turnover ratio is a liquidity ratio expressing the number of times a firm turns over a fixed asset in the …
Continue ReadingUsing a Template for Classified Balance Sheet: Free Download Sample Templates
A sample classified balance sheet template illustrates how the subcategories for classified balance sheet components are applied and presented as …
Continue ReadingVariance Analysis in Managerial Accounting: Formulas & Calculation Tips
The concept of variance analysis has far-reaching consequences when it comes to monitoring and analyzing productivity in a business. Learn how diverse …
Continue ReadingSubcategories for Classified Balance Sheet: Definitions and Descriptions
A classified balance sheet provides a quick reference in checking out the financial condition of an entity, because major components are presented …
Continue ReadingCurrent vs. Non Current Assets: What's the Difference and Why is it Important?
Current vs. non-current assets, along with their importance in accounting, are discussed in the article. The main difference between the two is how …
Continue ReadingWhy Depreciate Fixed Assets? Effects of Depreciation
Fixed assets are items that a company purchases for long term use in the business. Vehicles, machinery, equipment, furniture, land, etc. are some …
Continue Reading