Accounting Tools

NOVEMBER 26, 2023

Thus, trend analysis is quite useful for examining preliminary financial statements for inaccuracies, to see if adjustments should be made before the statements are released for general use. Related Articles Incremental Analysis Quantitative Analysis Sales Trend Analysis Types of Financial Analysis

Financial Analysis 75

Financial Analysis Financial Statements Expense Reports Collections 75

Accounting Tools

OCTOBER 24, 2023

Related Courses Business Ratios Guidebook Effective Sales Management Financial Analysis The Interpretation of Financial Statements What is Sales Volume? Sales volume is the number of units sold within a reporting period. This figure is monitored by investors to see if a business is expanding or contracting.

Financial Analysis 75

Financial Analysis Financial Statements Billing 75

Accounting Tools

JUNE 12, 2023

Related Courses Cost Accounting Fundamentals Financial Analysis Operations Management How to Calculate Efficiency The efficiency equation is a comparison of the work output from an operation to the work input to that same operation. The concept has been most thoroughly formalized in cost accounting , as noted below.

Financial Analysis 75

Financial Analysis Cost Accounting Accounting Accounting 75

Accounting Tools

MAY 12, 2024

Related AccountingTools Courses Cost Accounting Fundamentals Financial Analysis Related Articles Allowable Costs Committed Cost Direct Cost Incremental Cost Unavoidable Cost Training can usually be curtailed for extended periods of time, though doing so can reduce the level of employee expertise.

Financial Analysis 75

Financial Analysis Cost Accounting Tax Accounting 75

Accounting Tools

APRIL 24, 2024

Consequently, any financial analysis of results by month should factor in the number of business days in each of the reporting periods being analyzed. Terms Similar to Reporting Period A reporting period is the same as an accounting period. The result is a further difference in activity levels by month.

Financial Statements 71

Financial Statements Financial Analysis Financial Reporting Bookkeeping 71

Accounting Tools

JUNE 7, 2023

Related Courses Fixed Asset Accounting How to Audit Fixed Assets What is Accelerated Depreciation? Financial Analysis Effects of Accelerated Depreciation From a financial analysis perspective, accelerated depreciation tends to skew the reported results of a business to reveal profits that are lower than would normally be the case.

Financial Analysis 75

Financial Analysis Record Keeping Tax Auditing 75

Accounting Tools

APRIL 18, 2023

Related Courses Business Ratios Guidebook Financial Analysis The Interpretation of Financial Statements What is Net Profit Margin? Accounting compliance. A company may accrue revenue and expense items to be in compliance with various accounting standards, but this may give an incorrect picture of its cash flows.

Financial Analysis 75

Financial Analysis Financial Statements Tax Accounting 75

Accounting Tools

APRIL 18, 2023

Related Courses Corporate Finance Essentials of Business Math Financial Analysis What is the Rule of 69? The Rule of 69 is used to estimate the amount of time it will take for an investment to double, assuming continuously compounded interest. The calculation is to divide 69 by the rate of return for an investment and then add 0.35

Corporate Finance 75

Corporate Finance Financial Analysis 75

Accounting Tools

JUNE 8, 2023

Related Courses Activity-Based Costing Cost Accounting Fundamentals Financial Analysis What is a Mixed Cost? This is also a key concern when developing budgets, since some mixed costs will vary only partially with expected activity levels, and so must be properly accounted for in the budget.

Budgeting 75

Budgeting Financial Analysis Cost Accounting Accounting 75

Accounting Tools

DECEMBER 22, 2023

Related AccountingTools Courses Excel Formulas and Functions Financial Analysis Introduction to Excel Example of the Present Value Factor ABC International has received an offer to be paid $100,000 in one year, or $95,000 now. ABC's cost of capital is 8%.

Financial Analysis 75

Financial Analysis Budgeting 75

Accounting Tools

NOVEMBER 2, 2023

Related Courses Capital Budgeting Corporate Finance Financial Analysis What is the Opportunity Cost of Capital? The opportunity cost of capital is the incremental return on investment that a business foregoes when it elects to use funds for an internal project, rather than investing cash in a marketable security.

Financial Analysis 74

Financial Analysis Corporate Finance Budgeting 74

Accounting Tools

APRIL 17, 2024

This analysis can lead to more robust products, once management realizes that sturdier products incur lower warranty and field servicing costs. Related AccountingTools Courses Capital Budgeting Financial Analysis Purchasing Guidebook Related Article Lifetime Cost

Customer Service 75

Customer Service Budgeting Financial Analysis Cost Accounting 75

Accounting Tools

JUNE 19, 2023

Related Courses Financial Analysis Investing Guidebook What is an Annuity Due? An annuity due is a repeating payment that is made at the beginning of each period, such as a rent payment. It has the following characteristics: All payments are in the same amount (such as a series of payments of $500).

Financial Analysis 75

Financial Analysis 75

Accounting Tools

SEPTEMBER 24, 2023

What is an Accounting Department? The accounting department is part of the corporate overhead group of an organization. It is responsible for billings, payroll , cost accounting , the production of financial statements , paying suppliers , and similar activities.

Financial Analysis 40

Financial Analysis Accounting Accounting Financial Statements 40

Accounting Tools

NOVEMBER 20, 2023

This level of detailed variance analysis allows management to understand why fluctuations occur in its business, and what it can do to change the situation. In other words, put most of the variance analysis effort into those variances that make the most difference to the company if the underlying issues can be rectified.

Budgeting 75

Budgeting Financial Analysis Billing Cost Accounting 75

Accounting Tools

JULY 16, 2024

years) Related AccountingTools Courses Corporate Finance Essentials of Business Math Financial Analysis The Rule of 72 is fairly accurate for low rates of return, and becomes increasingly inaccurate when higher rates of return are incorporated into the calculation. 72 ÷ 1 = 72.0 years) 2% interest rate. (72 72 ÷ 2 = 36.0 72 ÷ 3 = 24.0

Corporate Finance 75

Corporate Finance Financial Analysis 75

Accounting Tools

SEPTEMBER 3, 2023

Related Courses Cost Accounting Fundamentals Financial Analysis What is a Sunk Cost? An accounting issue that encourages this adverse behavior is that capitalized costs associated with a project must be written off to expense as soon as the decision is made to cancel the project.

Computation 75

Computation Financial Analysis Cost Accounting Accounting 75

Accounting Tools

OCTOBER 22, 2023

Related Courses Credit and Collection Guidebook Financial Analysis What is Residual Income? There are three definitions of residual income. Residual Income for Businesses Yet a third definition of residual income relates to a business. We address each one below.

Financial Analysis 40

Financial Analysis Billing Collections 40

Accounting Tools

JUNE 2, 2024

Under this payment method, wages are only paid on a per-unit-produced basis, and so can definitely be classified as a variable cost. One exception to this rule is piece rate wages , which do change with production volumes.

Financial Analysis 40

Financial Analysis Cost Accounting Payroll Tax 40

Accounting Tools

SEPTEMBER 29, 2023

Examples of efficiency ratios are accounts receivable turnover , inventory turnover , fixed asset turnover , and accounts payable turnover. A highly efficient organization has minimized its net investment in assets, and so requires less capital and debt in order to remain in operation.

Financial Statements 75

Financial Statements Financial Analysis Accounts Payable Accounts Payable 75

Nanonets

MARCH 15, 2024

Today, Large Language Models (LLMs) can claim to pass the CPA exam, but are they really ready to take over the accounting world? Artificial intelligence is now being applied across professional domains that are ripe for automation - areas of work such as software, law, accounting, consulting, finance and so on.

Data Entry 59

Data Entry Accounting Accounting General Ledger 59

Accounting Tools

JULY 20, 2023

Related Courses Capital Budgeting Financial Analysis What is the Accounting Rate of Return? The accounting rate of return is the expected rate of return on an investment. In essence, then, profit is calculated using the accrual basis of accounting , not the cash basis.

Accruals 40

Accruals Accounting Accounting Financial Analysis 40

Accounting Tools

MARCH 25, 2024

This definition relates to the perceived benefit that management believes it can obtain from the additional unit. An example of this definition is the cost of paying overtime to employees to stay on the job and operate a production line for one more hour. Related Article Pricing Strategies

Financial Analysis 40

Financial Analysis 40

Accounting Tools

AUGUST 2, 2023

Related Courses Capital Budgeting Financial Analysis Investing Guidebook What is the Effective Rate of Return? Related Articles Average Rate of Return The Accounting Rate of Return The Expected Rate of Return The Required Rate of Return The Simple Rate of Return The Time-Adjusted Rate of Return

Financial Analysis 40

Financial Analysis Budgeting Accounting Accounting 40

Accounting Tools

MARCH 2, 2024

This can be done by shrinking the amount of accounts receivable and/or inventory outstanding. It is also possible to improve the equity spread by reducing the cost of equity, such as by retiring preferred stock that has a high fixed dividend rate.

Financial Analysis 40

Financial Analysis Financial Statements Account Receivables Accounts Receivable 40

Accounting Tools

JULY 26, 2023

Related Courses Cost Accounting Fundamentals What is Pro Rata? In accounting, this means revenues , expenses , assets , liabilities , or other items are proportionally allocated among participants. Pro rata refers to a proportional allocation. A participant may be an individual or an entity.

Billing 75

Billing Cost Accounting Accounting Accounting 75

Nanonets

SEPTEMBER 1, 2023

Artificial intelligence is now being applied across professional domains ripe for automation - work areas such as software, law, accounting, consulting, etc. These tasks include data entry, invoice processing, and financial analysis, which are crucial for decision-making, operational planning, and risk management.

AP 52

AP Accounting Accounting General Ledger 52

Accounting Tools

JUNE 10, 2023

Related Courses Essentials of Business Math Financial Analysis What is Quantification? In business, accounting systems have been designed to measure specific attributes of business transactions , which are then aggregated into financial statements. Quantification is the expression of an event in numeric terms.

Financial Statements 40

Financial Statements Financial Analysis Accounting Accounting 40

Accounting Tools

MAY 9, 2024

In this situation, qualitative factors tend to be addressed after a "hard" quantitative analysis has already been completed. This involves creating a tightly-defined definition of the decision. Related Articles Financial Analysis Financial Ratio Analysis Incremental Analysis Make or Buy Analysis Sales Trend Analysis Trend Analysis

Financial Analysis 40

Financial Analysis Tax 40

Accounting Tools

APRIL 12, 2024

Related AccountingTools Courses Capital Budgeting Financial Analysis Related Article Risk-Adjusted Discount Rate The term also refers to the interest rate that the Federal Reserve Bank charges to depository institutions that take loans from the Fed's discount window.

Financial Analysis 40

Financial Analysis Budgeting 40

Accounting Tools

DECEMBER 22, 2023

This concept is most commonly found at the financial analysis stage of a capital investment, where the projected cash flows of a proposed investment are examined. Negative IRR occurs when the aggregate amount of cash flows caused by an investment is less than the amount of the initial investment.

Financial Analysis 40

Financial Analysis Budgeting 40

Accounting Tools

JULY 19, 2023

Related Courses Financial Analysis What is Seasonality? When reviewing the results of a business, the analyst must take into account the impact of seasonality on reported results. When reviewing the results of a business, the analyst must take into account the impact of seasonality on reported results.

Financial Analysis 40

Financial Analysis Budgeting Accounting Accounting 40

Accounting Tools

JULY 25, 2023

Related Courses Corporate Finance Financial Analysis What is the Annualized Rate? Related Articles Average Rate of Return Rate of Return The Accounting Rate of Return The Effective Rate of Return The Simple Rate of Return The Time-Adjusted Rate of Return

Financial Analysis 40

Financial Analysis Corporate Finance Computation Accounting 40

Accounting Tools

AUGUST 3, 2023

Related Courses Effective Sales Forecasting Financial Analysis Financial Forecasting and Modeling What is Quantitative Analysis? Quantitative analysis is the use of mathematical models to analyze data points, with the intent of understanding a condition.

Financial Analysis 40

Financial Analysis Budgeting 40

Accounting Tools

JULY 20, 2024

Related AccountingTools Courses Cost Accounting Fundamentals Cost Management Financial Analysis Examples of Incremental Cost There are several situations in which incremental cost analysis can be used to determine the best outcome. Here are several examples: Overtime analysis.

Financial Analysis 40

Financial Analysis Payroll Cost Accounting Tax 40

Nanonets

JUNE 7, 2023

Artificial intelligence is now being applied across professional domains that are ripe for automation - areas of work such as software, law, accounting, consulting, finance and so on. It is time-consuming, requiring long hours of work to reconcile accounts, generate reports, and perform financial analysis.

Accounts Payable 52

Accounts Payable Accounts Payable AP General Ledger 52

Accounting Tools

SEPTEMBER 6, 2023

For example, it could be used to extrapolate the number of transaction errors occurring in the accounting department, the number of coupons submitted by customers, and the number of units produced by a machine. Related Articles Marginal Analysis Organic Growth Sustainable Growth Rate Unprofitable Products Analysis

Budgeting 75

Budgeting Financial Analysis Accounting Accounting 75