James Woodruff has been a management consultant to more than 1,000 small businesses. As a senior management consultant and owner, he used his technical expertise to conduct an analysis of a company's operational, financial and business management iss... Read more
Check out our blog post, A Complete Guide to Reading Financial Statements. Harold Averkamp has worked as a university accounting instructor, accountant, and consultant for more than 25 years. He is the sole author of all the materials on AccountingCo... Read more
Bad debts expense results because a company delivered goods or services on credit and the customer did not pay the amount owed. The allowance for doubtful accounts nets against the total accounts receivable presented on the balance sheet to reflect o... Read more
It may be obvious intuitively, but, by definition, a cash sale cannot become a bad debt, assuming that the cash payment did not entail counterfeit currency. The allowance for bad debt or the provision for doubtful accounts is a valuation account that... Read more
I want to know if the low asset turnover ratio indicates under-utilization of assets. The second piece of information that we need for the formula is the company's net revenue, which is the sales revenue after deducting various expenses. The net reve... Read more
By applying average accounts receivable calculations, companies can better ascertain how effective a business is in getting paid as quickly as possible by its buyers. That's the average time the company has to wait to get paid by creditors.Enroll and... Read more
Because the store's items are so expensive, it allows customers to make purchases using credit. When an item is sold on credit, the accounting manager enters the amount of the item into the books as an account receivable. In that case, the formula fo... Read more
The identical cash amounts are sometimes referred to as payments, receipts, or rent. An annuity is purchased to secure the future’s series of cash flows. It’s mostly the case with retirement, as it’s the age when one thinks to set s... Read more
It’s also important for candidates to have high attention to detail for the purposes of reviewing records and financial statements. Furthermore, being proficient in accounting software can also be beneficial to this career. Since accountants mu... Read more
Amortization is the process of spreading out a loan into a series of fixed payments. Justin Pritchard, CFP, is a fee-only advisor and an expert on personal finance. He covers banking, loans, investing, mortgages, and more for The Balance. He has an M... Read more
