Category: Bookkeeping

A recent example of a reverse stock split is General Electric’s (GE) 1-for-8 reverse stock split during the summer of 2021. The shares available to investors on the open market are commonly called the float. In general,…

Further, some of the finished aprons don’t pass the final inspection due to occasional defects not detected as the aprons were made. Note that the entire price variance pertaining to all of the direct materials received was…

Working capital is calculated from the assets and liabilities on a corporate balance sheet, focusing on immediate debts and the most liquid assets. Calculating working capital provides insight into a company’s short-term liquidity and efficiency. A company…

Up to 300,000 people, including those with side hustles, will no longer need to file a Self-Assessment tax return, tax minister James Murray is expected to announce in a speech later today. So once this entry is…

Accurate accounting for returned merchandise is essential for financial reporting. When a customer returns a product, the business adjusts both sales and inventory accounts. Per Generally using the price to earnings ratio and peg to assess a…

Same as above, but the payments occur at the beginning of each period, not the end. You don’t need to be a finance nerd or an Excel wizard to use a present value table. Need to know…

For example, if your business receives $10,000 worth of goods from a supplier who expects payment within the next month, the business has incurred a $10,000 expense. When you incur a debt, your creditor, lender or service…

There are several formulas for calculating the duration of specific bonds that are simpler than the above general formula. Note that modified duration is always slightly less than duration since the modified duration is the duration divided…

These laws vary by jurisdiction but aim to ensure fair treatment and working conditions for all workers. Recent updates in labor laws have strengthened safety regulations, reducing workplace injuries and improving overall job safety. In essence, blue-collar…

This approach helps prevent financial misstatements and compliance issues. Suspense accounts are temporarily classified as a balance sheet account, usually under the heading of current assets or current liabilities depending on the normal balance. Consequently at the…