A company can subtract the total debt-to-total-assets ratio from 1 to find the equity-to-assets ratio. If the debt-to-assets ratio is high, a company has relied on leverage to finance its assets. Both financial and operating leverage emerge from the base of fixed costs. That’s to say, operating leverage appears where there is a fixed financial …
Operating Leverage: What It Is, How It Works, How To Calculate Read More »
This can help prevent fraud, identify opportunities for cost savings, and provide valuable information for making informed business decisions. As your business grows and potentially takes on funding, the accrual-based and advanced bookkeeping services that it offers will be especially useful. You’ll be matched with a dedicated bookkeeper when you enroll in the service, and …
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If the variability in overhead costs is low, a method like the standard cost method may be adequate. However, if the variability is high, a more detailed method that considers the actual overhead costs, such as the actual cost method, may be more effective. The mining industry uses process costing to calculate the cost of …
Bad debt expense is one way of accounting because some customers will not pay their accounts. It’s a reasonable and accepted accounting principle, and it’s crucial to properly account for this kind of debt expense by defining, notating and calculating it accurately. In addition, maintaining accurate records of doubtful debt expenses ensures that companies comply …
This is likely to be complex, so the inventory allocation method is recommended. With periodic accounting, the purchase value is added directly to the Profit and Loss report or Income Statement when you buy the stock, and the inventory adjustment is added at the end of the month. You can only get an accurate profit …
From my initial point of sale/ information call with Della to my many calls with Elia, the bookkeeper, and the tax accountant, and their entire in-between have all exceeded my expectations. Finally, a business that can handle all aspects of my business and personal accounting needs for a reasonable fixed price. I was a little …
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