Category: Bookkeeping

Learn accounting fundamentals and how to read financial statements with CFI’s free online accounting classes. This financial statement summarizes on one page all of the changes that occurred in the stockholders’ equity accounts during the accounting year. Bonds are contractual liabilities where annual payments are guaranteed unless the issuer defaults, while dividend payments from owning…

In this article, we’ll explain what accounts receivable factoring is, the types of companies that commonly engage in it, why it is beneficial, and how to find a suitable factoring company. •   The factoring company has control of the invoices after your business sells them. That’s why it’s important to choose a factor that will…

Therefore, a decreasing depreciation charge will help balance the cost of maintenance of the asset. The companies need what are pre tax payroll deductions and benefits to measure this deterioration and calculate the values of the assets as it affects their business. Use this calculator to calculate an accelerated depreciation using the sum of years…

Therefore, a decreasing depreciation charge will help balance the cost of maintenance of the asset. The companies need what are pre tax payroll deductions and benefits to measure this deterioration and calculate the values of the assets as it affects their business. Use this calculator to calculate an accelerated depreciation using the sum of years…

This blog will delve into the fundamentals of bookkeeping, its types, and its essential elements. Understanding these aspects can help you maintain accurate financial records and make informed business decisions. The ledger is a more organised and structured record of financial transactions. Thus, it allows businesses to see the balance of each account at any…

In international trade, terms like FOB shipping point and FOB destination play a crucial role in defining responsibilities between buyers and sellers. These terms impact when ownership transfers, who pays for transportation, and who bears the risks during transit. Understanding these key logistics terms is essential for businesses looking to optimize their shipping strategies and…

(This potential energy determines how fast the person would be moving when they hit the ground if they were to jump off the ladder.) A person on the ground has the smallest possible amount of energy in this system. Someone on the first rung has slightly more energy, and so on up to the highest…

The high low method helps in budgeting by providing a formula to estimate future costs based on projected activity levels. This allows managers to prepare more accurate financial forecasts and make informed resource allocation decisions. The high-low point method uses only two data points (i.e., the highest and the lowest activity levels) which are generally…

For example, wood is a direct material for the chair company, since the final chair is made of it. Wood is considered a variable cost because the price of it can change over time. The total variable cost for this order of 30 chairs would be $1,500, meaning the chair present value of an ordinary…

In this scenario, changes in sales revenue have a lesser impact on operating income. Companies with a lower DOL are generally more resilient to fluctuations in sales volume but may have a lower profit potential during periods of growth. The degree of operating leverage measures how much a company’s operating income changes in response to…