Accounting

It also includes imprest accounts which are used for petty cash transactions. This cash is used for small payments like donuts and coffee for a morning meeting, reimbursing an employee for a minor business-related expense, or purchasing a low-cost supply, like paperclips or stamps. Below is a list of current assets that are often listed on a company’s balance sheet. Inventory is another type of current asset; it refers to the goods or raw materials a company has on hand that it can sell o […]

An analysis of working capital management efficiency in telecommunication equipment industry,Ganesan, V. . Rivier academic journal,3, 1-10.This study uses financial data from telecommunication equipment companies to analyse the relationship between working capital management and profitability. The study finds that inefficient working capital management negatively affects profitability, but does not significantly impact the profits of the examined companies. By regularly measuring your AP perfor […]

This article is about the concept in accounting and finance involving fixed capital goods. For economic depreciation, see Depreciation and Fixed capital § Economic depreciation. Without Section 1250, strategic house-flippers could buy property, quickly write off a portion of it, and then sell it for a profit without giving the IRS their fair share. On the other hand, expenses to maintain the property are only deductible while the property is being rented out – or actively being advertised for r […]

Like the accounting equation, it shows that a company’s total amount of assets equals the total amount of liabilities plus owner’s (or stockholders’) equity. In above example, we have observed the impact of twelve different transactions on accounting equation. The buyer pays cash to cover a debt to the seller with two transactions. Firstly, the buyer debits accounts payable, because the debt is now settled, and secondly, the buyer credits for the amount of the payment. These t […]

Constantly running out of the goods you sell costs sales and can ruin a reputation. If you run a manufacturing operation, inventory shortages can shut down production.

As clearly evident, Walmart has moderate Days Inventory outstanding of almost 42 days. On the contrary, Company B is able to clear the stock in almost 56 days which relatively lower than that of Company A. This indicates that Company A’s funds were blocked in inventories for almost 89 days. Now that we know all the values, […]

Order check stock from an office supply store or the bank that has the business payroll account and print the checks each pay period. We provide payroll, global HCM and outsourcing services in more than 140 countries. Whether you operate in multiple countries or just one, we can provide local expertise to support your global workforce strategy. Free Financial Modeling Guide A Complete Guide to Financial Modeling This resource is designed to be the best free guide to financial modeling! You shou […]