In this case the business will actually receive cash lower than the face value of the note payable. In this case the note payable is issued to replace an amount due to a supplier currently shown as accounts payable, so no cash is involved. Notes payable are liabilities and represent amounts owed by a business […]
Category Archives: Bookkeeping
The problem with this method is the need to measure value of sales every time a sale takes place (e.g. using FIFO, LIFO or AVCO methods). If accounting for sales and purchase is kept separate from accounting for inventory, the measurement of inventory need only be calculated once at the period end. This is a […]
He currently researches and teaches economic sociology and the social studies of finance at the Hebrew University in Jerusalem. Free accounting tools and templates to help speed up and simplify workflows. Shaun Conrad is a Certified Public Accountant and CPA exam expert with a passion for teaching. After almost a decade of experience in public […]
One of the sections of the cash flow statement is cash flow from investing activities. These can either be positive (cash generated by sales of investment securities or assets) or negative (cash spent on long-term assets, lending, or marketable securities). Consider a hypothetical company’s net annual cash flow from investing activities. All right, so now […]
Their low turnover rate can be attributed to the high cost and slow-moving nature of their luxury products. However, Tiffany & Co. has maintained a strong financial performance, despite its low inventory turnover ratio, due to its high profit margins and loyal customer base. A high turnover ratio typically signifies good sales performance, while a […]
Construction project management is run by a construction project manager. This person plans, coordinates, budgets and supervises the construction project. Predictive analytics also enable project managers to foresee potential issues, such as delays or cost overruns, and take proactive measures to address them. Owners frequently engage project management firms to efficiently oversee the entire project […]
When it comes to measuring business performance, it’s important to understand the difference between gross revenue vs. sales and revenue vs. gross sales. Gross revenue represents the total income generated by a business, while sales refer to the revenue generated from selling products or services. To calculate your company’s gross sales, add up the total […]
Send information between Wave and Google Sheets automatically, without writing any code, using Zoho Flow. Quickly connect Google Sheets to Wave with a Zapier template. If you’re not signed in to Wave while you’re connecting your account, Wave will also ask you to sign in. Wave will open in a separate browser tab and ask […]
In other circumstances, we may see projects where the payback occurs during, rather than at the end of, a given year. The formula for the simple payback period and discounted variation are virtually identical. All programs require the completion of a brief online enrollment form before payment. If you are new to HBS Online, you […]
They include cash, accounts receivable, inventory, prepaid expenses, and other assets a company expects to use or sell quickly. These assets are listed on a company’s balance sheet and are reported at their current market value or the cost of acquisition, whichever is lower. Investors can use this type of liquidity ratio to make comparisons […]