Instead, every retail business, regardless of its size and type, can use the retail inventory method. The best part is you don’t need to be an expert or exceptionally good at accounting to get it right. The retail inventory method … Read More
Multi-step income statement format is any day better than a single-step statement as it provides proper detailing. The company’s management might shift the expenses from the cost of goods sold to the operations to improve their margins artificially. It is … Read More
A DCF model can be based on the free cash flow to the firm (FCFF) or the free cash flow equity (FCFE). Free cash flow is the amount of cash a company generates (net of tax) after accounting for non-cash … Read More
Manual processes lead to more opportunities for discrepancies and inaccuracies in your data because they often do not provide sufficient controls. This makes it difficult to monitor the progress of the reconciliation process, pinpoint problems, or ensure timely corrections. You … Read More
The current asset that represents the amount of interest revenue that was reported as earned, but has not yet been received. Liabilities also include amounts received in advance for a future sale or for a future service to be performed. … Read More
An accountant can represent your business by preparing documentation to audit inquiries and help resolve discrepancies to reduce potential penalties or fines. Accountants can keep your business dealings up-to-date with regular financial reporting (e.g., quarterly and annual statements). Soft skills—particularly … Read More
The post-acquisition accounting of goodwill has been challenging for the Financial Accounting Standards Board (FASB), because the accounting profession doesn’t collectively hold clear views on the matter. In fact, the appropriate accounting treatment of acquired goodwill — whether to immediately … Read More
Although one period of negative cash flow isn’t necessarily a bad sign, Josh would want to ensure this doesn’t repeatedly happen period over period. Accounting for Marketing Agencies This could be anything from selling stock and services, earnings from investments … Read More
The issuer of a bearer form security keeps no record of who owns the security at any given point in time. Whoever produces the bearer certificate is assumed to be the owner and can collect dividends and interest payments. New … Read More
Slightly less than half of all the workers in private firms are at the 17,000 large firms, meaning they employ more than 500 workers. Another 35% of workers in the U.S. economy are at firms with fewer than 100 workers. … Read More