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

JULY 6, 2024

From a financial analysis perspective, a business should at least maintain its historical level of capital expenditures. An example of an asset upgrade is adding a garage onto a house, since it increases the value of the property, whereas repairing a dishwasher merely keeps the machine in operation.

Computation 98

Computation Record Keeping Financial Analysis Budgeting 98

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MARCH 2, 2024

Related AccountingTools Courses Business Ratios Guidebook Financial Analysis The Interpretation of Financial Statements Related Articles Capital Structure Analysis DuPont Analysis Incremental Analysis Quantitative Analysis Types of Financial Analysis

Financial Analysis 40

Financial Analysis Financial Statements Accounts Receivable Accounts Receivable 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

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

MARCH 30, 2023

Related Courses Business Ratios Guidebook Financial Analysis The Interpretation of Financial Statements What is the Book Value of Debt? The book value of debt is comprised of the following line items on an entity’s balance sheet : Notes payable. Found in the current liabilities section of the balance sheet.

Financial Analysis 75

Financial Analysis Financial Statements Accounts Payable Accounts Payable 75

Accounting Tools

AUGUST 2, 2023

Related Courses Capital Budgeting Financial Analysis Investing Guidebook What is the Effective Rate of Return? The effective rate of return is the rate of return generated by an investment when all factors impacting receipts are considered. This approach generates the most comprehensive view of the return on an investment.

Financial Analysis 40

Financial Analysis Budgeting Accounting Accounting 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

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

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

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

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

DECEMBER 28, 2023

Related AccountingTools Courses Excel Charts and Visualizations Financial Analysis Guide to Analytical Procedures The Interpretation of Financial Statements Related Articles Extrapolation Sales Trend Analysis Trend Analysis

Financial Analysis 40

Financial Analysis Financial Statements Budgeting 40

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. Second, there are substantial holidays within some reporting periods (such as November and December), while other months contain no holidays at all.

Financial Statements 71

Financial Statements Financial Analysis Financial Reporting Bookkeeping 71

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 amount of "work" could refer to time, effort, capacity , or more tangible items.

Financial Analysis 75

Financial Analysis Cost Accounting Accounting 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 73

Corporate Finance Financial Analysis 73

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

Accounting Tools

JULY 30, 2023

Related Courses Financial Analysis Financial Analysis Education Bundle The Balance Sheet What are Average Total Assets? Average total assets is defined as the average amount of assets recorded on a company's balance sheet at the end of the current year and preceding year.

Financial Analysis 40

Financial Analysis 40

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

MARCH 28, 2024

Related AccountingTools Courses Corporate Finance Financial Analysis The Interpretation of Financial Statements Related Articles Leverage Ratios Leveraged Lease This issue can be mitigated by restricting the amount of debt that a business takes on, as well as by maintaining a reasonable cash reserve.

Corporate Finance 40

Corporate Finance Financial Analysis Financial Statements Tax 40

Accounting Tools

AUGUST 19, 2024

expected rate of return Related AccountingTools Courses Capital Budgeting Financial Analysis Related Articles Incremental Internal Rate of Return Internal Rate of Return The Accounting Rate of Return The Effective Rate of Return The Simple Rate of Return

Financial Analysis 40

Financial Analysis Budgeting Accounting Accounting 40

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

AUGUST 23, 2023

Related Courses Financial Analysis What is Marginal Revenue? Marginal revenue is the additional revenue generated by the sale of one extra unit. The concept is frequently used to determine whether special pricing deals are worthwhile. For example, a business can sell 10 units for a total of $100, which is $10 each.

Financial Analysis 40

Financial Analysis 40

Accounting Tools

JUNE 10, 2023

Related Courses Financial Analysis Financial Forecasting and Modeling What are Quantitative Factors? These factors are commonly included in various financial analyses, which are then used to evaluate a situation. Quantitative factors are numerical outcomes from a decision that can be measured.

Financial Analysis 40

Financial Analysis 40

Accounting Tools

FEBRUARY 12, 2024

Related AccountingTools Courses Corporate Finance Financial Analysis The Interpretation of Financial Statements Related Article Leverage Ratios After one year, he finds that the actual net after-tax return on his purchase of the manufacturing company is just 3%.

Corporate Finance 40

Corporate Finance Financial Analysis Financial Statements Tax 40

Accounting Tools

NOVEMBER 4, 2023

Related Courses Financial Analysis The Interpretation of Financial Statements What is a Breakeven Chart? A breakeven chart is a chart that shows the sales volume level at which total costs equal sales. Losses will be incurred below this point, and profits will be earned above this point.

Financial Analysis 40

Financial Analysis Financial Statements 40

Accounting Tools

AUGUST 30, 2023

Related Courses Capital Budgeting Financial Analysis What is Differential Revenue? Differential revenue is the difference in sales that will be generated by two different courses of action. The concept is commonly used when evaluating which of two (or more) investments to make in a business.

Financial Analysis 40

Financial Analysis Budgeting 40

Accounting Tools

JULY 11, 2024

The company would most definitely be considered highly geared. Advantages of Financial Gearing There are several reasons why a business might use financial gearing, as noted below: Avoid dilution. The company currently has $2,000,000 of equity, so there is now a 5x ratio of debt to equity.

Corporate Finance 40

Corporate Finance Financial Statements Financial Analysis 40

Accounting Tools

JULY 25, 2023

Related Courses Corporate Finance Financial Analysis What is the Annualized Rate? The annualized rate is the computed amount of return that would be realized if a short-term investment were to be extrapolated for a period of one year.

Financial Analysis 40

Financial Analysis Corporate Finance Computation Accounting 40

Accounting Tools

SEPTEMBER 24, 2023

It is responsible for billings, payroll , cost accounting , the production of financial statements , paying suppliers , and similar activities. The accounting staff may provide a number of additional value-added services, such as actual-versus-budget reporting, cost reduction suggestions, and other forms of financial analysis.

Financial Analysis 40

Financial Analysis Accounting Accounting Financial Statements 40

Accounting Tools

JULY 19, 2023

Related Courses Financial Analysis What is Seasonality? Seasonality is a recurring and predictable pattern in the level of business activity over the course of a year. This pattern can be used to predict sales levels throughout the year, and so is incorporated into the annual budgeting process.

Financial Analysis 40

Financial Analysis Budgeting Accounting Accounting 40

Accounting Tools

JULY 12, 2024

The probability of occurrence for the variables used in these three cases clusters the highest probability variables in the most likely case.

Financial Analysis 40

Financial Analysis 40

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

OCTOBER 9, 2023

Related Courses Capital Budgeting Financial Analysis What is the Payback Reciprocal? The payback reciprocal is the payback period for an investment, divided by 1.

Financial Analysis 40

Financial Analysis Budgeting 40

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

AUGUST 21, 2024

Related AccountingTools Courses Capital Budgeting Financial Analysis How to Use the Required Rate of Return The required rate of return is useful as a benchmark or threshold, below which possible projects and investments are discarded.

Financial Analysis 40

Financial Analysis Budgeting Accounting Accounting 40

Accounting Tools

JUNE 7, 2023

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