January 19, 2021Charles Lutwidge
Assets are resources that bring value to the company. They are items that you buy to use in your business to help generate income over an extended period (more than 12 months). Non-current assets fluctuate in value over their lifespan. Some..
December 28, 2020Charles Lutwidge
Introduction Profit (contribution) margin is the difference between sales revenue and variable costs. Moreover, both of these indicators – revenue and costs – are taken for a specific volume of production. We can also say that marginal profit is the part..
December 25, 2020Charles Lutwidge
The impact of accounts receivable on the company’s financial position is ambiguous. A significant amount of accounts receivable can lead to a need to attract additional funds due to the outflow of the company’s own cash. On the other hand, selling..
December 23, 2020Charles Lutwidge
December 22, 2020Charles Lutwidge
All enterprises, regardless of their type and forms of ownership, maintain accounting records in accordance with the current legislation. If you are in a position where you will be using the financial data to make management decisions, knowing at least the..
December 14, 2020Charles Lutwidge
December 11, 2020Charles Lutwidge
Definition and formula The double declining balance method is the most popular variation of the accelerated depreciation method. Here, the depreciation rate is higher at the start of the asset’s life. This particular method never completely reduces the asset value to..
December 09, 2020Charles Lutwidge
Definition and Explanation Depreciation is the process of gradually transferring the cost of the means of production (long-term assets) to the manufactured product. Depreciation is also used to deduct the costs of buying and improving a rental property. For example, we..
December 08, 2020Charles Lutwidge
Definition The debt to asset ratio falls under the solvency category of the ratios. Solvency ratios evaluate the entity’s ability to survive over a longer period of time. This ratio calculates what portion of assets the business owner(s) financed with the..