What is Cash Flow and Why is it so Important?

The cash that a company generates from its operations is tied to its core business activities and provides the best opportunities for cash flow management. The cash flow statement measures the performance of a company over a period of time. But it is not as easily manipulated by the timing of non-cash transactions. As noted…

Read More

When are revenues earned?

To further complicate the topic, some differences exist between different accounting standards. Profit is the financial outcome that remains after subtracting all expenses from revenue. Unlike revenue, which represents the total earnings of a business, profit provides a more accurate measure of its financial health. EPS is calculated as net profit divided by the number…

Read More

Что такое своп в трейдинге и как он начисляется?

По валютным парам, процентные ставки которых примерно равны, своп и на покупку, и на продажу может быть отрицательным. Также стоит отметить, что трейдеры имеют возможность заработать не только на самих свопах, но и на перепродаже этих производных финансовых инструментов другим участникам рынка. Но нужно понимать, что свопы сами по себе не являются высоколиквидными, поэтому продать…

Read More

Accrued Rent Accounting under ASC 842 Explained

Examples include purchases made from vendors on credit, subscriptions, or installment payments for services or products that haven’t been received yet. Accounts payable are expenses that come due in a short period of time, usually within 12 months. The use of rented property during an accounting period without payment of rent results in the creation…

Read More

Debits and Credits T-Accounts, Journal Entries

It is typically represented as two columns with the accounts that have been affected listed on either side, usually labeled Debit (left) and Credit (right). The T account concept is especially useful when compiling more difficult accounting transactions, where the accountant needs to see how a business transaction impacts all parts of the financial statements.…

Read More

Xero v QuickBooks Online 2023 Feature Comparison

In comparison, Xero’s mobile app received an average rating of 4.7 on iTunes and 3.5 on Google Play Store. The way you build a website can directly impact the success your website has in attracting and retaining customers. If you’re behind on your tax payments or have past years where you didn’t even file a…

Read More

Standard cost accounting Wikipedia

The budgeting is successful if the standard cost is similar to the actual cost incurred. In case the actual cost exceeds the standard cost, the company must revise its production policies and increase efficiency to reduce the costs in the future. A standard cost variance can be unusable if the standard baseline is not valid.…

Read More