ADP RUN articles

An expenditure is a payment or the incurrence of a liability in exchange for goods or services. Evidence of the documentation triggered by an expenditure is a sales receipt or an invoice. Organizations tend to maintain tight controls over expenditures, to keep from incurring losses.

While many people in a company make expenditures, accountants are responsible for tracking and recording these purchases. Companies want to make sure they aren’t spending more than they make, so accounting i […]

Income statements—and other financial statements—are built from your monthly books. At Bench, we do your bookkeeping and generate monthly financial statements for you. Net income is a good starting point for determining the profitability of a company but free cash flow is often a focal point for determining if a company is a good investment. Cash flow measures may also detect business problems like growing inventory balances, or troubles with collecting Accounts Receivable.
Under absorption co […]

Assets are generally listed based on how quickly they will be converted into cash. Current assets are things a company expects to convert to cash within one year. Most companies expect to sell their inventory for cash within one year. Noncurrent assets are things a company does not expect to convert to cash within one year or that would take longer than one year to sell. Fixed assets are those assets used to operate the business but that are not available for sale, such as trucks, office furni […]

This indicator cannot be any lower than a certain threshold set by the football authorities. Liquidity ratios compare the line items in the balance sheet, and measure the ability of a business to pay its bills in a timely manner. Chief among these ratios are the current ratio and quick ratio, which compare certain current assets to current liabilities.

These are concerned with the return on investment for shareholders, and with the relationship between return and the value of an investment in […]

No, the face value of a security can vary depending on the type of security. Common stock typically has a face value of $1, but bonds typically have a face value of $1,000 or higher. Face value can also be used to calculate the cost basis of a security, which is used to determine the capital gains or losses when the security is sold. In the US, the face value is typically $1,000 for a corporate bond, $5,000 for a municipal bond and $10,000 for a government bond. We do not manage client funds o […]

When in doubt, please consult your lawyer tax, or compliance professional for counsel. This article and related content is provided on an” as is” basis. Sage makes no representations or warranties of any kind, express or implied, about the completeness or accuracy of this article and related content. 90% of business failures are caused by cash flow problems. Discover how to go from having a cash flow challenge to smart money management. One way to think about it is that expenses ar […]