The average receivables turnover is simply the average accounts receivable balance divided by net credit sales; the formula below is simply a more concise way of writing the formula. The receivables c [...]
Least square method is the process of finding a regression line or best-fitted line for any data set that is described by an equation. This method requires reducing the sum of the squares of the resid [...]
Launched in 2001, Quickbooks was one of the first online accounting software on the market. You have established a business and sold your first items or taken on your first costs. QuickBooks also offe [...]
By clearly seeing how much you owe at any given time, you can make better decisions around spending, pricing, and negotiating with suppliers. Request a demo and we'll show you exactly how our accounts [...]
Because the inventory turnover ratio uses cost of sales or COGS in its numerator, the result depends crucially on the company’s cost accounting policies and is sensitive to changes in costs. For examp [...]
You just need to know if your small business is making or losing money, and then have something to hand to your accountant at the end of the year so you can fulfill your obligation to the tax man. The [...]
If the business owner has a good personal D/E ratio, it is more likely that they can continue making loan payments until their debt-financed investment starts paying off. Finally, if we assume that th [...]
Other examples include services and utilities that may come at a fixed cost and do not have an impact on the number of units produced or sold. For example, if the government offers unlimited electrici [...]
CVP Analysis and Cost Structure (Single Product).Riviera Incorporated produces flat panel televisions. The company has annual fixed costs totaling $10,000,000 and variable costs of $600 per unit. Nell [...]
By adopting these tips, non-profits can streamline their bookkeeping practices, improve financial efficiency, and gain valuable insights for informed decision-making. Effective bookkeeping ensures tha [...]