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Why Is Managerial Accounting Important? The term “accounting” often gets associated with financial accounting. For most users, it is the primary branch in the accounting field. It usually involves the financial statements and reporting information about a fiscal year. This process creates the primary communication source between companies and their stakeholders. Financial accounting has several … Read more
How to Record NSF Check on Journal Entry? Companies maintain bank accounts that help facilitate payments to suppliers and other parties. These accounts also serve as a container for their cash and help safeguard it. On top of that, companies can also receive funds from their customers through their bank accounts. Banks also provide companies … Read more
How To Record Impairment Loss Journal Entry? Companies require assets to operate and generate revenues. Usually, these assets come from their operations over the years. Some companies may acquire them while others can also produce them. Either way, these assets contribute to the activities that companies perform. While companies have various asset types, fixed assets … Read more
What is the journal entry for accounts payable? Many companies operate in a supply chain facilitating converting material to finished goods. In this process, a company purchases raw materials from a supplier. Once they get those items, they put them through a manufacturing process to alter them. In some cases, companies may also sell them … Read more
Days Inventory Outstanding Businesses are run by sales. Days inventory outstanding is a measure that tells how quickly a business is turning its inventory into sales. Days inventory outstanding (DIO) is an important working capital ratio. It also shows the operating efficiency and short-term liquidity positions of a company. Let us discuss what is a … Read more
Accounting For Stock Appreciation Rights Stock appreciation rights (SARs)are one of the many stock-based compensation plans offered by employers. SARs and other stock-based plans are accounted for under ASC 718 guidelines. Let us discuss what are stock appreciation rights and their accounting treatment. What Are Stock Appreciation Rights (SARs)? Stock appreciation rights (SARs) are one … Read more
Accounting For Tenant Improvement Allowance Tenant Improvements can be described as the renovations or customizations that are made to a said property in order to benefit the tenant. However, the said alterations are only meant to be applicable to improvements in the rented space, like the office. They do not include building improvements that are … Read more
Accounting For Deferred Consideration Definition Deferred Consideration can be defined as a part of the purchase price that is payable by the buyer in the future, once the deal has been closed. The purchase price is mostly negotiated on the basis of the fair market value, and the mutual understanding between the purchaser, as well … Read more
Real Vs Nominal Cost Of Capital What Is Meant By Cost Of Capital? Cost of Capital can be defined as the company’s calculation of the minimum amount of return that is required that would be necessary in order for a process to be considered acceptable. The concept of cost of capital is mostly used … Read more
Advantages And Limitations Of WACC Definition Of WACC Weighted Average Cost of Capital is defined as the company’s cost of capital that is calculated using debt and equity. It can be defined as the minimum required rate of return for the company before the organization makes any new investment. It encapsulates the average cost of … Read more
