A lower quick ratio could mean that you’re having liquidity problems, but it could just as easily mean that you’re good at collecting accounts receivable quickly. Because inventory levels vary widely across industries, in theory, this ratio should give us a better reading of a company’s liquidity than the current ratio. As with many other […]
To use the sum of the years’ digits depreciation method, you’ll use a ratio. The numerator is the years left in the asset’s useful life, and the denominator is the sum of the years in the asset’s original useful life. The sum of the years’ digits depreciates the most in the first year, and the […]
Break-even analysis can help determine those answers before you make any big decisions. For example, if the demand for your product is smaller than the number of units you’ll need to sell to breakeven, it may not be worth bringing the product to market at https://www.business-accounting.net/ all. Finding your break-even point gives you a better […]
Looking ahead, we can expect continued technological advancements to yield even more sophisticated tools for efficient and transparent grant accounting and management. The importance of a dedicated system lies in its ability to provide a real-time overview of financial performance across multiple grants, ensuring that funds are being used appropriately and within budget constraints. Proper […]
Interim reports still follow the US GAAP standards and they are also integral to the annual set of financial statements. Because managerial accounting is not for external users, it can be modified to meet the needs of its intended users. For example, managers in the production department may want to see their financial information displayed […]
The accountant also prepares year-end financial statements and the proper accounts for the firm. The year-end reports prepared by the accountant have to adhere to the standards established by the Financial Accounting Standards Board (FASB). These rules are called Generally Accepted Accounting Principles (GAAP). Bookkeeping Basics Expenses are all the money that is spent to […]