Bookkeeping

The straight-line method is simple and easy to calculate and apply, but it also has some limitations which prevent them from performing. The value is the same, just that instead of the depreciation rate, you fill in the useful life of an asset of 5 years. The residual value is how much you expect an […]

At its core, revenue recognition determines the specific conditions under which income becomes officially recognized within a company’s financial statements. Simply put, it’s not about when the cash is received but when the earnings event occurs. Revenue is the value of all sales of goods and services recognized by a company in a period. Revenue

It not only provides insights into how much of the company’s earnings are being reinvested back into the business but also indicates how much buffer the company has to sustain financial shocks. For instance, a strategic decision to invest heavily in expansion could also lead to a short-term decrease in retained earnings but may result

These earnings, reported as part of the income statement, accumulate and grow larger over time. At some point, accumulated retained earnings may exceed the amount of contributed equity capital and can eventually grow to be the main source of statement of stockholders equity stockholders’ equity. In our modeling exercise, we’ll forecast the shareholders’ equity balance

When looking at your gross margin, benchmarking against averages in your industry gives you a more accurate picture of how you stack up relative to competitors. There is one downfall with this strategy as it may backfire if customers become deterred by the higher price tag, in which case, XYZ loses both gross margin and

These expenses that haven’t been paid yet are categorized as accounts payable. Your reports will look different depending on which you decide to use. Individuals who are successful bookkeeping professionals are highly organized, can balance ledgers accurately, have an eye for detail and are excellent communicators. This content is for information purposes only and should