If the asset's value falls below its net book value, the asset is subject to an impairment write-down. This means that its recorded value on the balance sheet is adjusted downward to reflect that it is overvalued compared to the market value. More t... Read more
Due to the sensitive nature of the production, Joe needs a consistent, high-quality, dependable supplier of raw materials. So, he reaches out to his distributor X, who supplies him with condensers and compressors. Also, according to the terms, he mu... Read more
While earnings are a company’s revenue minus operation expenses, earnings per share are the earnings remaining for shareholders divided by the number of outstanding shares. If a company has high earnings per share, investors perceive them to b... Read more
Once the balance of each account is calculated, all numbers should be recorded into your business’s accounting database. Based on these entries, an accountant should prepare the necessary reports to highlight the current financial position of... Read more
Long-term assets include intangibles like intellectual property and patents, along with property, plant, and equipment (PPE) and investments. When the balance sheet is not available, the shareholder’s equity can be calculated by summarizing th... Read more
For example, for a loan at a stated interest rate of 30%, compounded monthly, the effective annual interest rate would be 34.48%. Banks will typically advertise the stated interest rate of 30% rather than the effective interest rate of 34.48%. The s... Read more
Some useful types of variables are listed below. You will probably also have variables that you hold constant (control variables) in order to focus on your experimental treatment. You need to know which types of variables you are working with in ord... Read more
The federal government has spent $ more than it has collected in fiscal year (FY) , resulting in a national deficit. However, opponents of trade deficits argue that they provide jobs to foreign countries instead of creating them at home, hurting the... Read more
The use of closing entries resets the temporary accounts to begin accumulating new transactions in the next period. Otherwise, the balances in these accounts would be incorrectly included in the totals for the following reporting period. These are g... Read more
In the screenshot above, there are 25 transactions awaiting review in our Bank of America credit card account. You can initiate the process by choosing your credit card and clicking on the credit card you want to reconcile. Now select the date of th... Read more
