Important Petty Cash Procedures to Prevent Fraud and Misuse
Are petty cash procedures trivial rules that don’t require much attention? Their lack or weakness actually opens up avenues for accounting …
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Learn Some Best Practices on Accounts Receivable Valuation
Whether you’re a business owner or an investor looking to buy an existing business, you need to take a close look at accounts receivables (A/R) to …
Continue ReadingEasy Tips on How to Calculate Automobile Operating Expenses for Your Tax Return
If you utilize a vehicle for your business traveling, how do you determine which expenses you can use as a true expense for tax purposes? The IRS does …
Continue ReadingHorizontal Versus Vertical Analysis: Both Together Provides a Larger Picture
How do the financial analysts look at a company when trying to find good investments? Find out how horizontal and vertical analyses fit into …
Continue ReadingAn Example of Horizontal Analysis: The Steps, The Results and Tips
By stepping through an example of horizontal analysis, it is possible to see the purpose and benefits of this financial tool. Learn what to compare, …
Continue ReadingWhat is a Hurdle Rate? A Primer for Project Analysis
When calculating the hurdle rate for a project, the cost of capital of the enterprise is used as a starting point. But, don’t stop there! Make …
Continue ReadingAdvantages and Disadvantages of the High Low Method: Analyzing Mixed Costs into Fixed and Variable Elements
The high low method is a quick and easy method for computing fixed and variable elements in mixed costs. Advantages of the high low method include …
Continue ReadingTips on Learning the Difference Between Accounts Payable and Notes Payable
Although both accounts payable and notes payable are part of current liabilities, they have their own characteristics you’ll need to know. Read …
Continue ReadingA Guide to Accounting for Revenue Earned in a Prior Period
Business activity is fluid transcending periods, whereas accounting is in compartmentalized periods such as quarterly or annual statements. This very …
Continue ReadingDetermine Interest Rates on Notes Receivable
How does one determine the interest rate on notes receivable? Actually, this wouldn’t be a problem if the borrower has the promissory note at …
Continue ReadingThe Going Concern Concept: Accounting Definitions
Imagine yourself walking into your local bank. With business plan neatly tucked away in your briefcase, you recall the long hard hours it took you to …
Continue ReadingThe Importance of the Matching Principle in Accounting
What do period costs, product costs and revenue recognition all have in common? They are all components of the matching principle of GAAP. Not only …
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