Categoría: Bookkeeping

Put simply, a company’s net profit margin is the ratio of its net profit to its revenues. When calculating net margin and related margins, businesses subtract their COGS, as well as ancillary expenses. Some of these expenses include product distribution, sales representative wages, miscellaneous operating expenses, and taxes. Put simply, it’s the percentage of net […]

Your petty cash fund should be tracked and updated regularly to prevent theft or overspending. As you would with your business’s more significant finances, you’ll want to keep accurate records of where the money is coming from and going. When a petty cash fund is in use, petty cash transactions are still recorded on financial […]

In accounting and finance, leverage is the use of a significant amount of debt to purchase an asset, operate a company, acquire another company, etc. While these benefits can be enticing, it’s essential not to overlook the potential pitfalls of using financial leverage. Let’s consider this; suppose an investor borrows $1,000 at an interest rate […]

If you would like the name of the asset, or General Asset Account (GAA) included in the title of the depreciation schedule, enter the name in this field. Suppose an asset for a business cost $11,000, will have a life of 5 years and a salvage value of $1,000. A life interest in property, an […]

That means that the same amount is expensed in each period over the asset’s useful life. Assets that are expensed using the amortization method typically don’t have any resale or salvage value. Negative amortization is when the size of a debt increases with each payment, even if you pay on time. This happens because the interest […]

Although retained earnings are not themselves an asset, they can be used to purchase assets such as inventory, equipment, or other investments. Therefore, a company with a large retained earnings balance may be well-positioned to purchase new assets in the future or offer what is bond price definition of bond price bond price meaning increased […]

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