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...
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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...
June 05, 2021
Charles Lutwidge
LIFO Reserve Explained with Example
Definition It often happens that companies choose to have the accounting records to be maintained based on methods that are not allowed by the law to be used for reports meant for tax returns or financing. Yet, these methods often...
June 04, 2021
Charles Lutwidge
What Is the Payback Period?
The return on investment comes with complex planning, accounting, calculation, and analysis process. To get a return on investment, you need to have experience and certain knowledge, otherwise, this task will be very difficult. Each investor is interested when their...
June 03, 2021
Charles Lutwidge
Units of Production Method of Depreciation: Explanation and Calculation
Definition One of the main tasks of the business owners, especially in the current conditions, is to preserve the financial capabilities of the enterprise – to pay wages, vacation and other payments to employees, taxes to the budget, and solve...
