by admin | Sep 6, 2017 | Business By The Books
Inventory Valuation How does my inventory value affect my bottom-line and taxes? Your Profit & Loss report and Balance Sheet are interconnected. How you value inventory determines costs of sales (aka: cost of goods sold) and therefore profit. The formula is: Costs...
by admin | Aug 7, 2017 | Business By The Books
Gains & Losses Businesses often own capital assets. They include all kinds of property, movable or immovable, tangible or intangible, fixed or circulating. Thus, land and building, plant and machinery, motorcar, furniture, jewelry, route permits, goodwill,...
by admin | Jun 7, 2017 | Business By The Books
What is Debt Ratio? A Debt Ratio is a financial ratio that indicates the percentage of a company’s assets that are provided via debt. It is the ratio of total debt (the sum of current liabilities and long-term liabilities) and total assets (the sum of current assets,...
by admin | May 10, 2017 | Business By The Books
Why am I short on cash when my P&L says I am profitable? Young businesses and non-profits often struggle to remain cash positive. Even mature organizations can experience situations that cause cash flow problems. We are happy to talk with you further about cash...
by admin | Apr 26, 2017 | Business By The Books
Liquidity In accounting, liquidity (or accounting liquidity) is a measure of the ability of a debtor to pay their debts as and when they fall due. It is usually expressed as a ratio or a percentage of current liabilities. Liquidity is the ability to pay short-term...
by admin | Mar 27, 2017 | Business By The Books
Understanding Equity In financial accounting, owner’s equity consists of the net assets of an entity. Net assets is the difference between the total assets and total liabilities. Equity appears on the balance sheet (also...
