Compound journal entry is an accounting entry which affects three or more account heads. A simple journal entry has just two rows i.e. one debit and one credit, whereas a compound journal entry has three or more rows. The account can have debit or credit part, or it can have both debit and credit parts. […]
A favorable material price variance suggests cost effective procurement by the company. Direct Material Price Variance (DMPV) shows the amount by which the total cost of raw materials has deviated from the planned cost as a result of a price change over a period. An unfavorable one might show supplier problems or rising costs in […]
In addition, an older invoice may not be acceptable as collateral for a loan. Further, an older invoice may not be acceptable for invoice discounting. And finally, an invoice is generally more difficult to collect the longer it remains outstanding. A company with a high FCF indicates good operating cash flow and surplus cash available […]
We have also examined how they serve as essential guides for various stakeholders, including investors, creditors, and internal management. The shareholder equity section mainly provides information about how the firm has been financed and how much profit it retains to reinvest further in the business. Items included in Shareholders’ equity are common stock, additional paid-in […]
When prices are decreasing, dollar-value LIFO will show a decreased COGS and a higher net income. Dollar value LIFO can help reduce a company’s taxes (assuming https://www.bookstime.com/ prices are rising), but can also show a lower net income on shareholder reports. In an inflationary environment, where prices are rising, the cost of goods sold is […]
Helpful Fool Company’s board has elected to issue just 2,000 shares at this time. Therefore, the company currently has authorized 5,000 shares and has 2,000 shares issued and outstanding. A publicly traded company’s total number of shares outstanding can usually be found on exchange platforms and in the shareholder’s equity section of the company balance […]
Managing non-profit financial statements is very crucial for the operations of non-profit or non-government organizations. What exactly are the kind of organizations that benefit from outsourced accounting? Companies outsource to achieve cost savings and focus on core business functions. Top-notch organizations opt to outsource to drive transformational business results. When working with any service provider, […]