From the bank's point of view, your credit card account is the bank's asset. Hence, using a debit card or credit card causes a debit to the cardholder's account in either situation when viewed from the bank's perspective. All accounts that normally c... Read more
In accounting and bookkeeping, a debit balance is the ending amount found on the left side of a general ledger account or subsidiary ledger account. When the trial balance does not balance, try re-totaling the two columns. If this step does not locat... Read more
This assumption is based on the premise that today’s dollars could be invested and therefore appreciate in value over time. For example, if you pay a price lower than the DCF value, you’ll generate a positive ROI from your investment. On ... Read more
Don’t dip too low or too high, rather find a sweet spot that provides the necessary cash flow you need to grow. A higher receivables turnover ratio reflects a more efficient A/R department. Many clients may be accustomed to making payments usin... Read more
A low DSI reflects fast sales of inventory stocks and thus would minimize handling costs, as well as increase cash flow. The days sales in inventory calculation, also called days inventory outstanding or simply days in inventory, measures the number ... Read more
Your balance sheet will be separated into two main sections, cash and cash equivalent assets on the one side, and liabilities and equity on the other. Documenting the financial details of your business will give you a thorough understanding of availa... Read more
This means that you credit the cash account, but you debit your Prepaid Expenses account. A customer deposit is money from a customer to a company before the company earns it. It is a simple cycle whereby when the company receives cash from a custome... Read more
For example, an auto manufacturer's production facility would be labeled a noncurrent asset. The portion of ExxonMobil's balance sheet pictured below displays where you may find current and noncurrent assets.... Read more
To access past issues of the Avoidance Action Report, click here. To learn more about ASK LLP’s Avoidance Action experience, click here. Section 507 sets forth 10 categories of unsecured claims which Congress has, for public policy reasons, giv... Read more
An invoice is a list of items for which a customer or company has to make payments to its suppliers, service providers, or vendors. The accounts payable department receives invoices from the suppliers or vendors and assesses it before processing for ... Read more
