See Also: Current Liabilities Net 30 Credit Terms Accounts Payable Notes Receivable Long Term Debt Financial Ratios Notes Payable Definition Notes payable is a written promise to pay a certain amount at some future date. The account appears on the balance sheet when the company borrows money and signs a note or contract stating they
See Also: Restructuring Expense ProForma Financial Statements Nonrecurring Items In accounting, report abnormal or infrequent gains or losses in the company’s annual report as nonrecurring items. They are rare events or activities that are not part of the company’s normal business operations. They may also be called extraordinary items. You must disclose the details of
Net Sales Defined What is net sales revenue? Net sales revenue refers to a company’s total sales revenue in a given fiscal period after subtracting certain items. These items include returns, allowances, and discounts. Net sales revenue is in contrast to gross sales revenue. Gross sales revenue is not adjusted for returns, allowances, and discounts.
See Also: Margin vs Markup Markup Percentage Calculation Retail Markup Gross Profit Margin Ratio Analysis Net Profit Margin Analysis Margin Percentage Definition Gross margin defined is Gross Profit/Sales Price. All items needed to calculate the gross margin percentage can be found on the income statement. The margin percentage often refers to sales or profitability which
See Also: Blue Sky Laws Subscription (Preemptive) Rights Accounting Fraud Prevention using QuickBooks Binomial Options Pricing Model Black Scholes Option Calculation Insider Trading Defined Insider trading is buying or selling stock based on nonpublic information that will affect the stock’s price. A company’s executives and directors have access to significant information regarding the company’s activities.
See Also: Compound Annual Growth Rate (CAGR) Financial Reporting Financial Ratios Balance Sheet Standard Chart of Accounts Common Size Financial Statement Balancing the Balance Sheet Income Statement Definition The income statement definition is a financial statement that shows a company’s revenues and expenses over a period of time. Furthermore, it reports a company’s financial performance
See Also: General Ledger Reconciliation and Analysis Disclosure of Accounting Changes Accounting Principles Accounting Concepts Subsidiary Ledger Ledger Account Definition A ledger account, defined as the report which includes changes in balance sheet line-items, is an extremely valuable tool in accounting. These account numbers are separate from the balance sheet despite the fact that it
See Also: How to Prepare a Breakeven Analysis Contribution Margin Cost Volume Profit Model ProForma Financial Statements Net Profit Margin Analysis Prepare an Investor Package The Investor Package serves as a medium to visually communicate to the Owner/Management financial information which they might otherwise have difficulty digesting in financial statements. This is not unusual since
See Also: How to Manage Inventory Inventory Turnover Ratio Analysis Days Inventory Outstanding Analysis Inventory to Working Capital Analysis Freight on Board (FOB) Inventory Cost Definition Defined as the total cost that a company experiences while holding inventory, inventory cost is often one of the most substantial factors in the success of a business. Inventory cost
See also: Just in Time Inventory System Perpetual Inventory System Inventory Turnover Ratio Analysis Days Inventory Outstanding LIFO vs FIFO Inventoriable Costs In accounting, inventoriable costs refer to all costs incurred to obtain or produce the end-products. Apply these costs to the products the company produces and sells. The cost of raw materials, direct labor,
See Also: Current Assets Financial Assets Fixed Assets Goodwill Accounting Term Research and Development Intangible Assets Definition An intangible asset is a right or non-physical resource of a company. They are usually developed as a result of an acquisition that has been made, or years of research and development to develop a process or idea.
See Also: Accounting Income vs Economic Income Depreciation Cash Flow Statement Income Statement Generally Accepted Accounting Principles Goodwill Accounting Term The goodwill accounting term is an intangible asset. It represents non-physical assets, such as brand name and reputation, and shows up on the asset side of a company’s balance sheet. A company often acquires goodwill
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