November 03, 2020
Charles Lutwidge
How to Record Credit Sales
Today, retail and wholesale trade actively uses various schemes to attract customers: providing various types of discounts, selling goods on credit, etc. Many sellers offer customers to purchase goods on credit. The buyer pays only a fraction of the cost...
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November 02, 2020
Charles Lutwidge
Bad Debts Expense – Explanation and Accounting
Definition In modern times, many goods and services are sold to customers on a credit basis. This means that goods or services are provided to the customer now and then paid by the buyer at a future date. The customer...
November 02, 2020
Charles Lutwidge
Preparing a Bank Reconciliation
Any business activity requires control over expenses, income received, and net profit. It is impossible to plan further work of the enterprise without controlling processes. For constant control, there is a special system called accounting. Accounting in an enterprise is...
November 02, 2020
Charles Lutwidge
Vertical and Horizontal Analysis: What’s the Difference?
Horizontal and vertical analysis of the accounting documents and reports of the enterprise is an effective tool for researching the state of the enterprise and the effectiveness of its activities. Recommendations made on the basis of this analysis are constructive...
November 02, 2020
Charles Lutwidge
Financial Ratio Analysis
Financial Analysis: What is it? Analysis of financial ratios is an integral part of financial analysis, which is an extensive area of research and includes the following main areas: analysis of financial statements (including analysis of ratios), the formation of...
November 02, 2020
Charles Lutwidge
Cash Dividends and Stock Dividends
One of the income sources that investors rely on when buying shares on the stock market, in addition to the growth in the market value of the stocks, is dividends. A stock is, in essence, part of an operating business...
October 30, 2020
Charles Lutwidge
Single-Step vs Multi-Step Income Statement
The main indicators of modern accounting reports on financial results of an organization are income, expenses, results by type of activity, and the final financial result for the reporting period in the form of profit (loss). Profit is the source...
October 30, 2020
Charles Lutwidge
Inventory Turnover Ratio
Inventory is often the largest portion of working capital. Inventories are those things the business holds in order to enable it to produce as well as to trade. If the inventory is not used up by business operations at a...
