Gain Contingency
The accounting for gain contingency is a potential or pending development thay may result in a future gain to the company. For example,...
Why Gross Margin is an important metric?
We are looking at the word gross margin. Gross margin is a company’s total revenue minus by the COGS (cost of goods sold), divide by the...
Is your business solvent?
As a business owner, one of your greatest concerns that you face is whether or not your business is going to survive. Many businesses...
Word of the Week: Explicit Cost
As a business owner, one of the easiest things to identify is explicit cost. The most common examples of explicit costs include wages,...
Word of the Week: Acid Test Ratio
Liquidity! What is it? It is the ability of current assets to meet current liability when due. How does a business owner test they...
Accounting word of the Week: Target Income Sales
Target Income Sales
Accounting word of the Week: Receivable Turnover
Many banks will compute financial ratios to evaluate the liquidity of a company’s account receivables.
Accounting word of the Week: Sales Forecasting
Sales forecasting
Accounting word of the Week
Our word of the week is Sales Discounts. A sales discount is when cash is given from the seller to the purchaser for early payment of the...
Accounting word of the Week
Today, we are looking at the word sales allowance. Sales allowance is a reduction in the selling price of goods because of a particular...