I want to know if the low asset turnover ratio indicates under-utilization of assets. The second piece of information that we need for the formula is the company's net revenue, which is the sales revenue after deducting various expenses. The net reve... Read more
Since the lender is charging a high interest over a short period of time, the APR is much higher relative to a long-term bank loan or SBA loan. Why do we use aftertax figure for cost of debt but not for cost of equity? There is no difference between ... Read more
By applying average accounts receivable calculations, companies can better ascertain how effective a business is in getting paid as quickly as possible by its buyers. That's the average time the company has to wait to get paid by creditors.Enroll and... Read more
Because the store's items are so expensive, it allows customers to make purchases using credit. When an item is sold on credit, the accounting manager enters the amount of the item into the books as an account receivable. In that case, the formula fo... Read more
With BenchTax, all your business bookkeeping and tax filing is handled in one place, for one annual or monthly fee, coordinated by your dedicated team. We file taxes on investments and rental income; file up to five 1099 forms per year; and take adva... Read more
The identical cash amounts are sometimes referred to as payments, receipts, or rent. An annuity is purchased to secure the future’s series of cash flows. It’s mostly the case with retirement, as it’s the age when one thinks to set s... Read more
It’s also important for candidates to have high attention to detail for the purposes of reviewing records and financial statements. Furthermore, being proficient in accounting software can also be beneficial to this career. Since accountants mu... Read more
There are four different depreciation methods, and which you choose will depend on your business's structure and finances. The amount of accumulated depreciation for an asset will increase over time, as depreciation continues to be charged against th... Read more
Amortization is the process of spreading out a loan into a series of fixed payments. Justin Pritchard, CFP, is a fee-only advisor and an expert on personal finance. He covers banking, loans, investing, mortgages, and more for The Balance. He has an M... Read more
If you make a payment on a loan you guaranteed, you can deduct it in the year paid, unless you have rights against the borrower. If you qualify, you can use the nonaccrual-experience method of accounting, discussed later. Under this method, you don&r... Read more
