Direct costs are those costs that cann be directly attributed to a product or product line, or to one source of sales revenue, or one ... those costs that were incurred in the past. The money's gone.
Measuring profits or net income is the most important thing accountants do. The second most important task is measuring ... usually largest expense deducted from sales revenue in measuring profit.
The first and most important part of an income statement is the line reporting sales revenue. Businesses need to be consistent ... you report it before or after any collection efforts are exhausted?
Of course profit and cost of goods sold expense are the two most critical components of an income statement, or at least ... sales revenue and expenses and how the accounting methods are implemented.
While some lines of an income statement depend on estimates or forecasts, the interest expense line is a basic equation. When accounting ... continuum that's either left or right of center of GAAP.
It's obvious financial statement have a lot of numbers in them and at first glance it can seem unwieldy to read and understand. One ... grocery stores will show profit ratios of only 1 to 2 percent.
Publicly owned companies must report earnings per share (EPS) below the net income line in their income statements. This is ... , acquisition or divestiture will also impact the formula for EPS.
The price/earning (P/E) ratio is another measurement that's of particular interest to investors in public businesses. The P/E ... stock or might be based on an optimistic forecast by investors.
A public corporation is a business whose securities are traded on the public stock exchanges, such as the New York Stock Exchange ... reader to a more detailed SEC financial report for more specifics.
The dividend yield ratio tells investors how much cash income they're receiving on their stock investment in a business. This ... means its current assets should be twice its current liabilities.
Investors calculate the acid test ratio, also known as the quick ratio or the pounce ratio. This ratio excludes inventory and prepaid ... tax was earned on the total capital employed by the business.
Indpendent CPA auditors are like referees in the financial reporting arena. The CPA comes in, does an audit of the business ... guilty of obstruction of justice because it destroyed audit evidence.
Accounting fraud is a deliberate and improper manipulation of the recording of sales revenue and/or expenses in order to make a ... 's balance sheet. Its profit, therefore, would be overstated.
If a business breaks the rules of accounting and ethics, it can be liable for legal sanctions against it. It can ... on the financial statements prepared from the accounts of the business.
Most audit reports on financial statements give the business a clean bill of health, or a clean opinion. At the other end of the ... concern, these doubts are spelled out in the auditor's report.
It might seem obvious, but in managing a business, it's important to understand how the business makes a profit. A company ... expense and see how your projected profit looks for the coming year.
In any type of businesses, an accountant is needed. You have to consider that accounting is basically the language in business and having ... career that you want if you take this type of career.
Accounting or accountancy is one of the best careers available today. Accountants are always on demand and the fields or jobs that you ... work hard and you should be dedicated in this line of work.
If you have an ambition in pursuing a career in accounting or accountancy, then you might want to start planning first before jumping ... a smooth career path that can lead to your goals and success.
Within the accountancy field, there are several career choices and that includes accounting auditing career. Auditors play a very ... and many business and companies will be after your services.
Accounting or accountancy is one of the most promising types of profession today. It is always in demand and the career ... in to becoming a successful accountant in the field you choose.
Are you taking up an accounting course or are you already a graduate of accountancy? It doesn't really matter whether you're ... dictionary with you to avoid mistakes in doing your accounting works.
Starting a business can be quite trying at times. There are many things you must consider when starting a business. In addition ... your business could be shut down before it has ever truly begun.
If you think that starting your own business is cakewalk, you're very wrong. Aside from developing good products and services, ... can be certain that all your financial tasks are handled effectively.
Different fields of study make use of certain terms that are not easily understood by others. If you're an accounting student or ... learned about net earnings, net income, net worth, dividends, etc.