Articles

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 and..

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 cost..

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 on..

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 non-productive..

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 profit...

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 the..

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 and..

Bookkeeping in its essence is the activity of keeping a record of economic activities transactions of a company in a documentary form. It facilitates the management of economic activities, payment of salaries, calculation and payment of taxes, and other mandatory cash..

Definition Every business owner will likely come across the term accrued payroll sooner or later. As you probably know, wages and salaries mean the same thing. This is the amount you pay your employees. At the same time, wages may vary..