June 25, 2021
Charles Lutwidge
Classified Balance Sheet
Overview A Balance Sheet is a document that you will see in every business. In different countries, it is customary to draw up this financial statement in different forms, but the essence does not change. The main differences lie in...
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June 24, 2021
Charles Lutwidge
What Are the Main Income Statement Accounts?
In today’s article, we are going to review the main accounts that are found on one of the financial statements prepared by the businesses, the Income statement. Trading Account The trading account category deals with the price of goods sold...
June 23, 2021
Charles Lutwidge
Learn How to Calculate Cost Per Unit
Basics Unit cost is one of those basic principles but it is one that is very important to know. It goes hand in hand with the concept of profitability. For instance, if you sell a shirt for $5 and it...
June 17, 2021
Charles Lutwidge
Debits and Credits in Accounting
Definition There are many reasons why accounting is important. Bookkeeping is a system in which every business transaction is reflected in a specific record. Summarizing all business operations, a complete picture of the company’s activity is created. Everything is based...
June 16, 2021
Charles Lutwidge
Capital Budgeting Explained
Financial plans are guides that allow you to navigate the financial capabilities of an enterprise and choose effective actions. Budget planning of income and expenses, for instance, is needed to save money, to be efficient in financial management, to reduce...
June 15, 2021
Charles Lutwidge
Indirect Method – Cash Flow
Overview Cash is the most liquid category of assets, which provides the greatest degree of liquidity and, consequently, freedom of choice. It represents the beginning and end of the life cycle of any enterprise whose purpose is to make a...
June 14, 2021
Charles Lutwidge
Asset Turnover Ratio Explanation and Example
To improve the efficiency of using the company’s own funds, timely analysis of performance indicators, including the calculation of asset turnover, is required. In the article, we will tell you how to correctly calculate the asset turnover ratio, explain what...
June 11, 2021
Charles Lutwidge
Simple Explanation of the Periodic Inventory System
Inventory is a way of verifying the actual availability of valuables listed in the organization’s accounting records, their condition and correct storage, and so on with accounting data. The purpose of the inventory is to ensure the reliability of accounting...
