Mes: julio 2023

Cash flows provide more information about cash assets listed on a balance sheet and are related, but not equivalent, to net income shown on the income statement. But combined, they provide very powerful information for investors. And information is the investor’s best tool when it comes to investing wisely. You can also sign up for …

Why are the amounts on the financial statements rounded to thousands or millions? Leer más »

The quick ratio (or the acid test ratio) is more conservative than the current ratio in that the amount in inventories, supplies, and prepaid expenses is not included. These current assets are excluded because it is assumed that they will not be turning to cash quickly. The quick ratio, by excluding inventory, paints a more …

How to Calculate And Interpret The Current Ratio Leer más »

Though part of an entry for bad debt expense resides on the balance sheet, bad debt expense is posted to the income statement. Recognizing bad debts leads to an offsetting reduction to accounts receivable on the balance sheet—though businesses retain the right to collect funds should the circumstances change. The AR aging method groups all …

Bad Debt Expense Definition, Reporting Methods Leer más »

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What Does It Cost to Outsource Tax Preparation Tasks? Leer más »