Bookkeeping

You can report retained earnings either on your balance sheet or income statement. Without transferring funds, your financial statements will be inaccurate. Your closing journal entries serve as a way to zero out temporary accounts such as revenue and expenses, ensuring that you begin each new accounting period properly. Income summary is not reported on … Continue reading »

The carrying value of a bond is an essential figure for investors and financial analysts, reflecting the bond’s current worth on the balance sheet. This value accounts for the bond’s face value, any amortized discount or premium, and unamortized adjustments. Understanding the carrying value is crucial for making informed investment decisions, assessing performance, and complying … Continue reading »

As such, keeping an eye on the equity multiplier in the context of how a company generates earnings is a good idea. The table below shows a very impressive increase in ROE over the 2013 through 2022 period. It also shows a significant increase in the equity multiplier since the company has taken on debt; … Continue reading »

This effect of the use of historical cost basis is best explained by way of an example. Some assets that are generally valued at historical cost (e.g. property) may be valued according to a different basis (e.g. market value basis) if certain conditions are satisfied (e.g. market value of the assets could be determined reliably). … Continue reading »

FIFO offers a more straightforward approach, particularly useful for businesses where inventory items are consistently moving. It’s also the most accurate method of aligning the expected cost flow with the actual flow of goods. It reduces the impact of inflation, assuming that the cost of purchasing newer inventory will be higher than the purchasing cost … Continue reading »

This means that Stacy’s investors receive 1 dollar in dividends for every dollar they have invested in the company. In other words, the investors are getting a 100 percent return on their investment every year Stacy maintains this dividend level. The primary reason to understand dividend yield is to help you understand which stocks offer … Continue reading »

For example, a Single-level BOM for a table might list the tabletop, legs, screws, and glue without indicating the sub-assembly of the legs to the tabletop. The Engineering and Manufacturing BOMs are dynamic documents, often subject to revisions and updates as the product moves through different stages from conception to finalization. From engineering BOMs to … Continue reading »

A class of corporation stock that provides for preferential treatment over the holders of common stock in the case of liquidation and dividends. For example, the preferred stockholders will be paid dividends before the common stockholders receive dividends. In exchange for the preferential treatment of dividends, preferred shareholders usually will not share in the corporation’s … Continue reading »

A Certified Bookkeeper is responsible for maintaining accurate financial records, preparing financial statements, and ensuring compliance Legal E-Billing with relevant laws and regulations. There are several educational paths available, from local bookkeeping programs to online certification courses, each designed to equip you with the skills needed to excel in this field. The Accounting Clerk certificate … Continue reading »