Current Ratio: How to Calculate and Analyze It + Examples
In other words, the current ratio is a good indicator of your company’s ability to cover all of your pressing debt obligations with the cash and short-term assets you have on hand. It’s one of the ways to measure the solvency and overall financial health of your company. GAAP requires that companies separate current and long-term […]
Job-order Costing Principles of Managerial Accounting
It is one of the significant components of the product cost of the company where the other components of the product cost include direct material cost and manufacturing overhead costs. In a service environment, direct labor rates can be recorded directly on a per-job basis. Lawyers, consultants, and others are often required to track their […]
Invoice Processing Procure to Pay
Maximize spending control with negotiated pricing and real-time budget checks. Watch the video to see how you can streamline payables and purchasing. When you are ready to see more, join a webinar or contact us to schedule a personal demo. Reduce data entry, human error and banking fees with Yardi CHECKscan. Checks are scanned, uploaded […]
Adjusting entry for unearned revenue: examples and how to
Unearned revenue also serves as an indicator of performance in the future. Retainer agreements, airline tickets, and subscription-based software are some of the businesses where this prepaid revenue occurs. Unearned revenue recognition will happen as soon as the service is provided. Customers can purchase a six-month subscription to get a discounted rate. They pay you […]
Current Ratio Definition, Formula, and Calculation
This means that companies with larger amounts of current assets will more easily be able to pay off current liabilities when they become due without having to sell off long-term, revenue generating assets. On December 31, 2016, the balance sheet of Marshal company shows the total current assets of $1,100,000 and the total current liabilities […]
Accounting Explained With Brief History and Modern Job Requirements
IFRS specify in detail how companies must maintain their records and report their expenses and income. They were established to create a common accounting language that could be understood globally by investors, auditors, government regulators, and other interested parties. Delving into the roots of modern financial frameworks, International Accounting Standards (IAS) precede widely accepted standards […]
Online Accounting Software for Your Small Business
Use simpler versions of Xero’s accounting software for small businesses clients whose needs are more limited. Not sure what to look for when payroll processing shopping for bookkeeping or accounting software? Many bookkeeping products can also usually handle (or help with) tasks like billing, payroll, accounts payable, tax filing, and financial reporting. Spend less time […]
The Matching Principle in Accounting
The matching principle states that the cost of goods sold must be matched to the revenue. This revenue was generated by the sale of goods costing 4.00 a unit and therefore the cost of goods sold is 32,000 (8,000 units x 4.00). This concept applies to all kinds of business transactions involving assets, liabilities and […]
Accounting Overview, Principles, Examples, Importance, & Facts
Financial accounting is intended to provide financial information on a company’s operating performance. Financial accounting is the widely accepted method of preparing financial results for external use. Financial bookkeeping services in sacramento accounting is dictated by five general, overarching principles that guide companies in how to prepare their financial statements. Changes to this method can […]
What Is QuickBooks? A Guide to QuickBooks Features & Pricing
This makes it a whole lot easier to overlook its fairly limited capabilities. Generate profit and loss reports through the “Report Center” to get a snapshot of your accounts receivable, budgets, cash flow, etc. An income statement, showing your profit margin, allows you to see how well your business is doing and if costs need […]