An expense ratio is a fee charged by an investment company to manage the shareholders’ funds. Investment companies such as mutual funds often incur various operating expenses when managing investors’ funds, and they charge a small percentage on the funds under management to cover the expenses. The law requires insurance […]

Through this focus, managerial accountants provide information that aims to help companies and departments in these key areas. Cost accounting is a type of management accounting, where the accountant specializes in tracking, reporting, and optimizing a company’s spending—ultimately to increase cost efficiency and profit margins. Management accounting refers to the […]

Each section of the balance sheet — assets, liabilities, and equity — provides a different view into the company’s finances. However, all three sections are related, as total assets are equivalent to the sum of liabilities and equity. As a result, construction companies often find it difficult to match the […]

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Pension obligations are crucial to understanding a company’s commitment to its employees and the potential strain on future resources. Accurately accounting for pension what are retained earnings obligations can be complex and may require actuarial valuations to determine the present value of future obligations. A liability is generally an obligation […]

We have introduced a new term in this incomestatement—the contribution margin. The contributionmargin is the amount by which revenue exceeds the variablecosts of producing that revenue. On a per unit basis, the contributionmargin for Video Productions is $8 (the selling price of $20 minusthe variable cost per unit of $ […]

A high turnover indicates that the company’s strengths are rooted in the efficient use of assets. Dupont Analysis offers a comprehensive method for examining a company’s Return on Equity (ROE) by deconstructing it into its core components. This enables a clearer understanding of the factors driving a company’s financial performance. […]

On Coursera, enroll in the Intuit Bookkeeping Professional Certificate program to dive into financial statement analysis, assets, liability, and equity. Follow the steps below to figure out how to find the best option for your goals. As you can see, the steps of how to become a bookkeeper and creating […]

The consensus I hear is that dealers are simply too busy to be bothered, and, well, if it’s not broken don’t mess with it! But if you’re overlooking your accounting team—missing training opportunities or recognizing objections to progress—you’re https://www.bookstime.com/ headed for trouble. Profitability, and profit retention, go hand-in-hand with an […]

Both of these funding arrangements have become increasingly common among startups. A good accountant can tell you where your business is financially and help you chart a path for its financial future. With this information, your accountant can also dig down a little deeper into your operations with unit economics. […]