What is Fixed asset turnover ratio The fixed asset turnover ratio compares net sales to net fixed assets. It is used to evaluate the operating performance of a business. A high ratio indicates that a business is: Doing an effective job of generating sales with a relatively small amount of fixed assets Outsourcing work to avoid […]
What is CPA Accounting | Career Guide
What is CPA Accounting The United States Bureau of Labor and Statistics, which is charged with monitoring all major professions and industries in the United States, predicts a rather stable future for those who seek a career as a certified public accountant. Through the end of the decade, the federal body estimates that the profession […]
Cash flows from financing activities
Cash flows from financing activities Cash flows from financing activities is a line item in the statement of cash flows. This statement is one of the documents comprising a company’s financial statements. The line item contains the sum total of the changes that a company experienced during a designated reporting period that were caused by […]
What is Accounts Payable
Accounts payable is the aggregate amount of an entity’s short-term obligations to pay suppliers for products and services which the entity purchased on credit. If accounts payable are not paid within the payment terms agreed to with the supplier, the payables are considered to be in default, which may trigger a penalty or interest payment, […]
Periodic inventory system
Periodic Inventory System Overview The periodic inventory system only updates the ending inventory balance in the general ledger when you conduct a physical inventory count. Since physical inventory counts are time-consuming, few companies do them more than once a quarter or year. In the meantime, the inventory account in the accounting system continues to show […]