May 17, 2021
Charles Lutwidge
Simple Explanation of Purchase Discounts
Almost every individual and business owner has come across purchase discounts sometime in their life. The financial benefit for the company providing the discount is extremely simple – it gets cash flow that it can use in its business activities....
Delegate your financial records to a highly qualified bookkeeper and forget about bookkeeping stress forever.
May 16, 2021
Charles Lutwidge
Cash and Cash Equivalents
Information on the availability and flow of funds is necessary to determine the minimum need for funds, as well as to analyze the company’s liquidity. Cash and cash equivalents are the first items we see on the company’s Balance sheet...
May 15, 2021
Charles Lutwidge
Simple Explanation of FOB Shipping Point
Meaning The FOB portion of this term is usually considered to be an abbreviation for “Free On Board”, although you might also see F stand for freight. In any case, the meaning for the user is the same. It indicates...
May 14, 2021
Charles Lutwidge
Days Sales in Inventory
The concept of product turnover determines how quickly the funds invested in goods will return to you, and bring a profit. This is one of the main concepts for the company’s success. In this article, we will explain what it...
May 13, 2021
Charles Lutwidge
Contingent Liability Explanation and Examples
Meaning If a business is facing a potential obligation that must be fulfilled at a future date, it might have to record a liability in the present period. Contingent liability depends on the likelihood of an event occurring. In other...
April 15, 2021
Charles Lutwidge
What are Long Term Liabilities?
Definition A liability is a responsibility or a promise to another person or entity. To resolve financial issues, many companies use internal and third-party funding sources. In the second case, the organization will have so-called long-term and short-term obligations. A...
April 15, 2021
Charles Lutwidge
Vertical Analysis Explanation and Example
The company’s ability to maintain its solvency and financial stability testifies to its stable financial condition. In turn, the financial analysis of the enterprise gives an understanding of whether, for example, the business is capable of successfully functioning and developing,...
April 15, 2021
Charles Lutwidge
Horizontal Analysis Overview
In pursuit of achieving the best results, a modern financial manager needs not just ideas for business development, but it is desirable to calculate and evaluate different aspects of the company’s activities, directing the results towards increasing profits and business...
