Accounting

If, for example, a company earns $100 in January, $150 in February, and $200 in March, and uses a two-month moving average, its normalized earnings would be $125 for February and $175 for March. Normalized Net Earningsmeans net income as per the income statement for a financial year end determined in accordance with Canadian generally accepted accounting principles consistently applied. Marketing expenses which exceed 11% of revenues for any given financial year must be approved by the Board of […]

And the differences affect whether the gains or losses show up on the income statement or balance sheet. It is very important for an accountant to be familiar with the differences of these securities because it enables them to record them in the right period with a correct amount instead of undervaluing or over-valuing the above stated accounts. Similarly, investors should also know the difference between AFS and trading securities in order to see if these investments are in line with their fin […]

Excel Shortcuts PC Mac List of Excel Shortcuts Excel shortcuts – It may seem slower at first if you’re used to the mouse, but it’s worth the investment to take the time and…

An important component of a company’s research and development arm is its direct R&D expenses, which can range on a spectrum from relatively minor costs to several billions of dollars for large research-focused corporations.
There’s one exception to the rule against capitalizing res […]

Subtract the standard variable overhead cost per unit from the actual cost incurred and multiply the remainder by the total unit quantity of output. The variable overhead efficiency variance can be confusing as it may reflect efficiencies or inefficiencies experienced with the base used to apply overhead.

SQ and SP refer to the “standard” quantity and price that was anticipated. Variance analysis can be conducted for material, labor, and overhead.
Responsibility Accounting
All rema […]

An example of the progressive tax includes the estate tax whereby a tax is levied on estates with a value of over $5.3 million. There has been growing support to make the U.S. income tax more progressive. It’s levied on the total value of assets passed to living beneficiaries at a top rate of 40% on amounts greater than $11.7 million as of 2021 (up from $11.58 million in 2020). Progressive tax systems improve the poor’s ability to purchase everyday items as well, increasing economic […]

Startups are often operating at a loss for the first few years, so investors look at their total revenue to evaluate demand for their products or services. RevenueRevenue is the amount of money that a business can earn in its normal course of business by selling its goods and services.

Make decisions that will hold up in the long-term, and create a culture where employees can invest in the future of the company. Understanding when your company has the means to start growing steadily helps you […]