Examples presented on the previous post [Applying Installment Method] ignored interest, a major component of most installment sales contracts. It is customary for the seller to...
In this post, I am going to reveal “how to apply revenue recognition under Installment method” in step-by step. As the title says, it is typically...
A daily question faced by managers is whether the right components and services will be available at the right time to ensure that production can occur....
Through this post, you can learn what accounting mainly responsible for and get the sense of where accounting likely involves in most of your life, as...
“What does this ‘Accounting: The Language of Business, Investing, Finance, and Taxes’ about?”, you may wonder. Okay, this is not about calculating (measuring), nor recording transaction (recognizing),...
Every department in every business produces some kind of information that can be used by its manager to measure performance. This information may be related to operational...
This post lists set of ratios and formulas that can be derived primarily from the income statement. There are several that require additional information from the...
This post contains list of measurements ratio formula that can be used to describe an organization’s operating performance in such areas as sales, gross margins, investment...
This post is filled with measurements that are of considerable use to lenders, investors, and investment analysts. The measures are used to evaluate a company’s viability....
This post contains several measurements ratio formula that can be used to determine the relationship between a company’s debt and equity as well as the comparative...
This post is aimed squarely at measurements that can be used to determine a company’s ability to create a return on investment. These measures encompass net...
This post lists ratio formula for those measurements that are of most use to outsiders who are reviewing a company’s market performance. It covers not just...
The accounting department spends the bulk of its time processing standard transactions, such as billings, cash receipts, expense report processing, and payments to suppliers. Accordingly, many...
The logistics function is composed of production scheduling, purchasing, materials handling, and distribution. These areas are all central to the smooth functioning of a company’s production...
This post focuses on the measurements that can be used to determine the performance of the engineering department, especially of its new-product design function. There are...
Production measures are unique in that they involve very few financial inputs. Instead, most of the information from which they are derived is obtained from other...
The sales function is the engine that supplies the rest of a company with enough revenue to create profitability and positive cash flow. Since it is...
Though many of the other ratios in this post series are useful for determining a company’s performance level in a variety of areas, the core issue...