Here again, no matter which situation is causing the reduction in the inventory to sales ratio, either one suggests that you are effectively managing your business's inventory levels and its cash flow. Inventory turnover also reflects the carrying co... Read more
Typically, permanent accounts have no ending period unless you close or sell your business or reorganize your accounts. All income statement balances are eventually transferred to retained earnings. In accounting, a permanent account refers to a gene... Read more
It indicates that the company is in good financial health and is less likely to face financial hardships. Notice that the cash ratio is much smaller than the other two ratios. In analyzing the cash ratio, any ratio greater than 0.5 is considered good... Read more
A closed iron tank 12 m long 9 m wide and 4 m deep is to be made . Determine the cost of iron sheet used at the rate of rs 5 per meter , sheet being 2 m wide. A closed account is any account that has been closed out or otherwise terminated, either by... Read more
As a company’s assets grow, its liabilities and/or equity also tends to grow in order for its financial position to stay in balance. How assets are supported, or financed, by a corresponding growth in payables, debt liabilities, and equity reve... Read more
Third, the opposite holds true for liability, revenue, and equity accounts. The mnemonic for remembering this relationship is G.I.R.L.S. Accounts which cause an increase are Gains, Income, Revenues, Liabilities, and Stockholders' equity.... Read more
So, the ending balance of this period will be the beginning balance for next period. Finally, dividends are closed directly to retained earnings.... Read more
Bookkeeping offers much lower barriers to entry, and the competition you face in the job search is less fierce. There are critical differences in job growth and salaries between the two. Growth for accountants and auditors is expected to continue for... Read more
I was fortunate to get a job offer from a mid-size CPA firm in New England while I was a senior in college, and I spent many years working there as an auditor. Over 40 of the state boards now require applicants for CPA status to complete a special ex... Read more
If you are going to create the payment in the next batch of automatic payments, you enter the prepayment voucher and then follow the regular procedures for processing automatic payments. To make the payment using manual payments, you create the prepa... Read more
