In the example of the loan transaction above, the increase in cash would be recorded as a debit to the company's cash on hand, increasing it by the loan amount. When an accountant is executing a transaction on the balance sheet of a company, debits a... Read more
In short, the Imprest petty cash procedure is a rudimentary method for tracking petty cash disbursements. Find out more with our simple guide, starting with a quick overview of the meaning of Imprest. Read more
A historical cost is a measure of value used in accounting in which an asset on the balance sheet is recorded at its original cost when acquired by the company. ABC Company, based in Florida, purchased a building many years ago at a historical cost o... Read more
If you need to sell your 4 percent bond prior to maturity you must compete with newer bonds carrying higher coupon rates. These higher coupon rate bonds decrease the appetite for older bonds that pay lower interest. This decreased demand depresses th... Read more
These are the costs a company pays for holding inventory in stock before it is sold to customers. Macgregor Company completed its first year of... Stan Conner and Mark Stein were discussing the... Sales reported on the income statement totaled... Whe... Read more
Then, apply the following formulation when you want to calculate an estimated value for a rental property. This method is only used when there are not sufficient comparable sales needed to estimate the site value . Allocation is most dependable when ... Read more
Outside of academia, Julius is a CFO consultant and financial business partner for companies that need strategic and senior-level advisory services that help grow their companies and become more profitable. The cost of direct materials used in the ma... Read more
A high accounts receivable turnover ratio can indicate that the company is conservative about extending credit to customers and is efficient or aggressive with its collection practices. It can also mean the company’s customers are of high quali... Read more
There are numerous accounting certifications or qualifications that can be pursued before you have a college degree. Most of them require you to get a degree at some point, but you can take a qualifying exam and move toward certification before your ... Read more
Thus to reflects this in the Financial statement of the Business, Depreciation is treated as an expense and is calculated in monetary terms. There are two types of depreciation methods which are used in Finance. These are “Straight-line depreci... Read more
