June 23, 2021
Charles Lutwidge
Learn How to Calculate Cost Per Unit
Basics Unit cost is one of those basic principles but it is one that is very important to know. It goes hand in hand with the concept of profitability. For instance, if you sell a shirt for $5 and it...
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June 17, 2021
Charles Lutwidge
Debits and Credits in Accounting
Definition There are many reasons why accounting is important. Bookkeeping is a system in which every business transaction is reflected in a specific record. Summarizing all business operations, a complete picture of the company’s activity is created. Everything is based...
June 16, 2021
Charles Lutwidge
Capital Budgeting Explained
Financial plans are guides that allow you to navigate the financial capabilities of an enterprise and choose effective actions. Budget planning of income and expenses, for instance, is needed to save money, to be efficient in financial management, to reduce...
June 15, 2021
Charles Lutwidge
Indirect Method – Cash Flow
Overview Cash is the most liquid category of assets, which provides the greatest degree of liquidity and, consequently, freedom of choice. It represents the beginning and end of the life cycle of any enterprise whose purpose is to make a...
June 14, 2021
Charles Lutwidge
Asset Turnover Ratio Explanation and Example
To improve the efficiency of using the company’s own funds, timely analysis of performance indicators, including the calculation of asset turnover, is required. In the article, we will tell you how to correctly calculate the asset turnover ratio, explain what...
June 11, 2021
Charles Lutwidge
Simple Explanation of the Periodic Inventory System
Inventory is a way of verifying the actual availability of valuables listed in the organization’s accounting records, their condition and correct storage, and so on with accounting data. The purpose of the inventory is to ensure the reliability of accounting...
June 07, 2021
Charles Lutwidge
The Beginner’s Tutorial to Bookkeeping
Bookkeeping in its essence is the activity of keeping a record of economic activities transactions of a company in a documentary form. It facilitates the management of economic activities, payment of salaries, calculation and payment of taxes, and other mandatory...
June 06, 2021
Charles Lutwidge
Accrued Payroll Explanation
Definition Every business owner will likely come across the term accrued payroll sooner or later. As you probably know, wages and salaries mean the same thing. This is the amount you pay your employees. At the same time, wages may...
