liabilities

Tag: liabilities

Balance Sheet Definition

See Also: Chart of Accounts (COA) Working Capital Analysis Quick Ratio Analysis Current Ratio Definition Financial Ratios Common Size Financial Statement Contra Asset Account Balance Sheet Definition The balance sheet is a financial statement that shows a company’s financial position at a point in time. The balance sheet format comes in three sections: assets, liabilities, and owners’ equity. The

Read More

Standard Chart of Accounts

See Also: Chart of Accounts (COA) Problems in Chart of Accounts Design Complex Number for SGA Expenses Role of a Company Back Office Standard Chart of Accounts In accounting, a standard chart of accounts is a numbered list of the accounts that comprise a company’s general ledger. Furthermore, the company chart of accounts is basically a filing system for categorizing all of

Read More

Payroll Accounting

See also: Commission Accounting PEO Arrangement Compared to Outsourcing Payroll Direct Labor Pension Plans Federal Unemployment Tax Act (FUTA) Outsourced Accounting Services Payroll Accounting is the function of calculating and distributing wages, salaries, and withholdings to employees and certain agencies. It is generally done through different documents such as time sheets, paychecks, and a payroll

Read More

Balancing the Balance Sheet

See: Balance Sheet Balance Sheet Definition The balance sheet is a financial statement that shows a company’s financial position at a point in time. The balance sheet format comes in the following three sections: Assets Liabilities Owners’ equity The assets represent what the company owns. Then, the liabilities represent what the company owes. Finally, the owners’ equity represents shareholder interests in the company. The value of the company’s assets must equal the

Read More

Working Capital

See Also: Balance Sheet How to collect accounts receivable Factoring Quick Ratio Analysis Current Ratio Analysis Financial Ratios What is Working Capital? Use the following formula to figure out what is working capital. Formula: Current Assets – Current Liabilities = Working Capital Working Capital Definition The Working Capital definition or WC is the difference between

Read More

Unearned Revenue

See Also: Accounts Payable Unearned Revenue Definition Unearned revenues are titles for certain revenues that have not been earned. You can also call unearned revenues deferred revenues. Though it seems comically intuitive, unearned revenue is very important and often observed in the real world. In accounting, they are represented as liabilities on the balance sheet. This is

Read More

Net Cash

See Also: Current Ratio Analysis Quick Ratio Analysis Financial Ratios Current Liabilities Debt Ratio Analysis Net Cash Definition The net cash formula is cash minus the liabilities. It is often used in business much like the current ratio. It determines a company’s ability to pay off its obligations. You can also use it to determine

Read More

Insolvency Definition

See Also: Chapter 11 Bankruptcy Chapter 7 Bankruptcy Bankruptcy Costs Bankruptcy Information Fixed Charge Coverage Ratio Analysis Insolvency Definition Insolvency is the inability to pay debts when they are due. It also occurs when a company’s liabilities exceed the value of its assets, if you cannot readily cover these the assets into cash to repay debts.

Read More

Delivered Duty Unpaid

See Also: Delivered Duty Paid (DDP) Freight on Board (FOB) Delivery Order Ex Works (EXW) Cost of Goods Sold (COGS) Delivered Duty Unpaid Delivered Duty Unpaid or DDU is the contract assuming that a vendor or seller will assume transportation costs associated with an international or overseas sale. Furthermore, the buyer will assume all of

Read More

Equity Multiplier Definition

See Also: Define Leverage (Finance) Operating Leverage Long Term Debt to Total Asset Ratio Analysis Debt Ratio Analysis Equity Multiplier Definition The equity multiplier definition, also referred to as leverage of a company, is the amount of debt and other liabilities a firm has assumed as a percentage of the total assets on average throughout

Read More

Current Ratio Definition

See Also: Balance Sheet Current Assets Current Liabilities Working Capital Analysis Quick Ratio Analysis Net Cash Current Ratio Definition The current ratio definition, defined also as the working capital ratio, reveals company’s ability to meet its short-term maturing obligations. Values for the current ratio vary by company and industry. In theory, the larger the ratio

Read More

Comprehensive Income

See Also: Accounting Income vs. Economic Income Accounting Income Definition Economic Income Income Statement Net Income Debt Restructuring Maximizing Your Bottom Line In 3 Simple Steps Net Profit Margin Analysis Define Comprehensive Income Define Comprehensive Income as the overall change in wealth for a company during a period. This includes not only the growth through

Read More