Accounting Tools

APRIL 24, 2024

A reporting period is the span of time covered by a set of financial statements. Organizations use the same reporting periods from year to year, so that their financial statements can be compared to the ones produced for prior years. What is a Reporting Period? It is typically either for a month, quarter, or year.

Financial Statements 71

Financial Statements Financial Analysis Financial Reporting Bookkeeping 71

Accounting Tools

OCTOBER 25, 2023

Related Courses Financial Analysis The Interpretation of Financial Statements What is the Accounting Breakeven Point? This concept is used to model the financial structure of a business.

Accruals 75

Accruals Accounting Accounting Financial Analysis 75

Accounting Tools

APRIL 18, 2023

Related Courses Business Ratios Guidebook Financial Analysis The Interpretation of Financial Statements What is Net Profit Margin? Net profit margin is the percentage of revenue left after all expenses have been deducted from sales. The net profit margin is intended to be a measure of the overall success of a business.

Financial Analysis 75

Financial Analysis Financial Statements Tax Accounting 75

Accounting Tools

SEPTEMBER 29, 2023

Related Courses Business Ratios Guidebook Guide to Analytical Procedures The Interpretation of Financial Statements What is Ratio Analysis? Ratio analysis is the comparison of line items in the financial statements of a business.

Financial Statements 75

Financial Statements Financial Analysis Accounts Payable Accounts Payable 75

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

JULY 26, 2023

Related Courses Entrepreneur’s Guidebook Financial Analysis The Interpretation of Financial Statements What is Burn Rate? Related Articles Financial Statement Analysis Free Cash Flow How a Profitable Business Can Run Out of Cash What are Illusory Profits?

Financial Analysis 40

Financial Analysis Financial Statements 40

Accounting Tools

JULY 30, 2023

Related Courses Financial Analysis Mergers and Acquisitions The Interpretation of Financial Statements What is Adjusted EBITDA? This approach is used to normalize the reported results of the companies included in an industry analysis. Related Articles The Difference Between EBIT and EBITDA

Financial Statements 40

Financial Statements Financial Analysis Tax 40

Accounting Tools

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

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 18, 2023

Related Courses Financial Analysis The Interpretation of Financial Statements What are Normalized Earnings? Normalized earnings are an organization’s reported profits , adjusted to remove the impact of seasonality , as well as unusual revenues and expenses.

Financial Statements 40

Financial Statements Financial Analysis 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

JUNE 7, 2023

Related Courses Corporate Finance The Interpretation of Financial Statements Treasurer's Guidebook What is Financial Leverage? Financial leverage is the use of debt to buy more assets. However, an excessive amount of financial leverage increases the risk of failure, since it becomes more difficult to repay debt.

Corporate Finance 75

Corporate Finance Financial Statements Tax Financial Analysis 75

Accounting Tools

APRIL 11, 2023

Financial Analysis Calculate the various ratios associated with a company's financial statements and compare them on a trend line to determine the financial condition, financial results, and cash flows of the business. These results can also be compared to industry averages.

Financial Statements 40

Financial Statements Financial Analysis Corporate Finance 40

Accounting Tools

JULY 12, 2023

Related Courses Business Ratios Guidebook Financial Analysis The Interpretation of Financial Statements What is a Growth Rate? A growth rate is the percentage rate at which a variable is increasing. The rate is measured as a percentage of a baseline period.

Financial Analysis 40

Financial Analysis Financial Statements 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

MAY 21, 2023

Related Courses Business Ratios Guidebook Financial Analysis The Interpretation of Financial Statements What is EBITDA? As such, it should not be included in the financial statements or accompanying footnotes issued by a business. These issues are noted below.

Financial Statements 40

Financial Statements Financial Analysis Accruals Tax 40

Accounting Tools

FEBRUARY 12, 2024

Related AccountingTools Courses Corporate Finance Financial Analysis The Interpretation of Financial Statements Related Article Leverage Ratios Since he is generating a negative return of 5% on his investment, David has experienced negative leverage.

Corporate Finance 40

Corporate Finance Financial Analysis Financial Statements Tax 40

Accounting Tools

MAY 11, 2023

Related Courses Financial Analysis The Interpretation of Financial Statements What is Vertical Analysis? Vertical analysis is the proportional analysis of a financial statement , where each line item on a financial statement is listed as a percentage of another item.

Financial Statements 40

Financial Statements Financial Analysis Accounts Payable Accounts Payable 40

Accounting Tools

AUGUST 6, 2023

Related Courses Business Ratios Guidebook Financial Analysis The Interpretation of Financial Statements What are Illusory Profits? Illusory profits are generated when there is a difference between historical costs and current costs. These profits are largest when costs are rising or when a firm has a large asset base.

Financial Analysis 40

Financial Analysis Financial Statements 40

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

MAY 18, 2024

For the purposes of this specific production-increase decision, then, the associated direct costs are: Related AccountingTools Courses Cost Accounting Fundamentals Financial Analysis When to Use Direct Costing Direct costing is of great use as an analysis tool. Profit-volume relationship.

Financial Statements 52

Financial Statements Financial Reporting Financial Analysis Cost Accounting 52

Accounting Tools

DECEMBER 22, 2023

Related Articles Financial Statement Analysis Horizontal Analysis How to Use the Quick Ratio in Financial Analysis Profit Analysis The Difference Between Vertical Analysis and Horizontal Analysis Vertical Analysis

Financial Analysis 40

Financial Analysis Financial Statements 40

Accounting Tools

JULY 14, 2024

This concept is only applicable to management accounting activities; it is is not used in financial accounting , since no spending decisions are involved in the preparation of financial statements.

Financial Analysis 40

Financial Analysis Financial Statements Cost Accounting Financial Accounting 40

Accounting Tools

JULY 28, 2023

Related Courses Business Ratios Guidebook Financial Analysis The Interpretation of Financial Statements What is Net Income Margin? It is used in ratio analysis to determine the proportional profitability of a business. Net income margin is the net after-tax income of a business, expressed as a percentage of sales.

Financial Analysis 40

Financial Analysis Accruals Financial Statements Billing 40

Accounting Tools

JULY 21, 2023

Related Courses Financial Analysis The Interpretation of Financial Statements What is Percent Variance? A percent variance presents the proportional change in an account balance from one reporting period to the next. Thus, it shows the change in an account over a period of time as a percentage of the account balance.

Financial Analysis 40

Financial Analysis Budgeting Financial Statements Accounting 40

Accounting Tools

MAY 2, 2023

Related Courses Financial Analysis What is Implicit Cost? Implicit cost is not recorded in the accounting records of a business, and so does not appear in its financial statements. Implicit cost is the amount that could have been earned if a different path had been chosen.

Financial Analysis 40

Financial Analysis Financial Statements Budgeting Accounting 40

Accounting Tools

JULY 30, 2023

Related Courses Business Ratios Guidebook Financial Analysis The Interpretation of Financial Statements What is Cash Flow per Share? Cash flow per share is the amount of a firm’s net cash flows allocated to each share outstanding.

Financial Analysis 40

Financial Analysis Financial Statements Accounting Accounting 40

Accounting Tools

JULY 11, 2024

How to Calculate Financial Gearing The calculation used for financial gearing is to add together all forms of debt and then divide by the total amount of equity. The company would most definitely be considered highly geared. 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

NOVEMBER 6, 2023

Related Courses Business Ratios Guidebook Financial Analysis The Interpretation of Financial Statements What is Equity Turnover? Equity turnover is a ratio that measures the proportion of a company's sales to its stockholders' equity.

Financial Analysis 40

Financial Analysis Financial Statements 40

Accounting Tools

DECEMBER 10, 2023

How to Calculate Net Operating Assets The formula to calculate net operating assets is as follows: + The total assets of a company - All liabilities - All financial assets + All financial liabilities = Net operating assets This definition shows that all finance-related items are to be extracted from assets and liabilities.

Financial Statements 40

Financial Statements Accounts Payable Accounts Payable Account Receivables 40

Accounting Tools

OCTOBER 8, 2023

Related Courses Business Ratios Guidebook Financial Analysis The Interpretation of Financial Statements What is Horizontal Analysis? Horizontal analysis is the comparison of historical financial information over a series of reporting periods.

Financial Statements 40

Financial Statements Financial Analysis Accounts Payable Accounts Payable 40

Accounting Tools

JUNE 16, 2023

Related Courses Business Ratios Guidebook Financial Analysis The Interpretation of Financial Statements What is Cash Flow from Assets? Cash flow from assets is the aggregate total of all cash flows related to the assets of a business.

Financial Analysis 40

Financial Analysis Accounts Payable Accounts Payable Accounts Receivable 40

Accounting Tools

JULY 24, 2023

Related Courses Budgeting Financial Analysis The Interpretation of Financial Statements What is the Sustainable Growth Rate? The sustainable growth rate is the maximum increase in sales that a business can achieve without having to support it with additional debt or equity financing.

Financial Analysis 40

Financial Analysis Financial Statements Budgeting 40

Accounting Tools

MARCH 27, 2023

Related Courses Cost Accounting Fundamentals Financial Analysis The Interpretation of Financial Statements What is the Cost Volume Formula? The cost volume formula is used to derive the total cost that will be incurred at certain production volumes.

Financial Analysis 40

Financial Analysis Financial Statements Budgeting Cost Accounting 40

Accounting Tools

OCTOBER 9, 2023

Related Courses Business Ratios Guidebook Financial Analysis The Interpretation of Financial Statements What is the DuPont Analysis? DuPont analysis breaks down the components of the return on equity formula to reveal the different ways in which a business can alter its return on equity.

Financial Analysis 40

Financial Analysis Financial Statements 40

Accounting Tools

JULY 30, 2023

Related Courses Financial Analysis Investing Guidebook The Interpretation of Financial Statements What is the Price to Cash Flow Ratio? The price to cash flow ratio compares a stock price to its operating cash flow per share.

Financial Analysis 40

Financial Analysis Financial Statements 40

Accounting Tools

APRIL 28, 2023

Related Courses Business Ratios Guidebook Financial Analysis The Interpretation of Financial Statements What is the Net Income Formula? The net income formula yields the residual amount of profit or loss remaining after all expenses are deducted from revenue.

Financial Analysis 40

Financial Analysis Accruals Financial Statements Tax 40