The number of outstanding shares is also important in calculating other financial metrics such as earnings per share. For instance, stock buybacks may increase the value of the remaining shares…
Read MoreIf an asset was purchased on the balance sheet date 10 years ago, then it may well be market value, but it is the market value at that point in…
Read MoreThe Rebekah Lodges were founded on September 20, 1851, when, after considerable debate, the Sovereign Grand Lodge of the Independent Order of Odd Fellows voted to adopt the Rebekah Degree,…
Read MoreAdjusted Trial Balance refers to the general ledger balances reflecting adjustments, which include accrued expenditure and non-cash expenses. The list and the balances of the company’s accounts are presented after…
Read MoreOn the flip side, using cash accounting can make a business’s financials appear more volatile. This can what is a contra asset account make it harder to understand the company’s…
Read MoreShareholders’ equity refers to the owners’ claim on the assets of a company after debts have been settled. The first is the money invested in the company through common or…
Read MoreIndividual accounts should be interest-bearing, unless the funds will be held for only a short time or are likely to yield only a small amount of interest. If payment of…
Read MoreIt doesn't involve one single metric; instead, it is a way of analyzing a variety of financial data about a company. Inconsistent Accounting PracticesLastly, inconsistent accounting practices among companies can…
Read MoreAs businesses grow, so does the complexity of their financial transactions. For small businesses, freelancers, and sole proprietors, a single-entry accounting system may be sufficient when starting out. However, as…
Read MoreCost of goods sold (COGS) documents the inventory and purchase amounts spent on products or services produced, manufactured, or sold during a given time period. COGS can be calculated per…
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