Financing

What Is A Good Retained Earnings To Assets Ratio? Retained Earnings to Total Assets is a ratio that measures accumulated earnings over the total assets possessed by the company. It mainly represents the total assets that are funded by the retained earnings of the organization. The retained earnings to assets ratio indicate the management’s approach … Read more

How Does Interest Expenses Report on Statement of Cash Flow? In general accounting, the difference between accruals and cash is not crucial. In most cases, accounting principles prefer companies to record transactions based on the accruals concept. Consequently, they must account for transactions when they occur. The cash settlement involved in those transactions does not … Read more

How Does Unearned Revenues Report on Statement of Cash Flow? The accruals concept in accounting requires companies to record income and expenses when they occur. In the past, companies only recognized these items if they involved a cash flow. However, the accruals concept changed that treatment. While this made accounting straightforward and more transparent, it … Read more

What is Program Expense Ratio? Nonprofits, or nonprofit organizations, are entities that serve a specific purpose. Usually, this purpose includes a collective, public or social benefit. Nonprofits do not operate to generate profits from their activities. Any income from those operations is secondary to the nature of these entities. Usually, these entities conform to several … Read more

What is Unrestricted Fund Balance? Overview: Fund balance can simply be referred to as the difference between assets and liabilities in a government fund. The governmental funds account for the tax-supported activities of a given government. It comprises resources that are used by the government to meet their day-to-day expenses. It includes the following reserves, … Read more

Accumulated Depreciation Accumulated Depreciation is referred to as the total amount a company depreciates its assets with. On the other hand, depreciation is referred to as the amount with which the company’s assets are depreciated in a given period. Essentially, accumulated depreciation is referred to as the total amount of a company’s cost that has … Read more

What Is Meant By Repairs And Maintenance Expense? Repairs and Maintenance Expenses can be defined as costs that are incurred in order to restore the condition of the asset. The proper accounting that is incurred for these costs is to charge them to the respective expense period when the cost is actually incurred, as per … Read more

What Is A Bottleneck In Production? A bottleneck is a point of congestion existing in the production system (for example, assembly lines) that occurs when workloads arrive at a quicker pace which cannot be handled by the production process itself. The inefficiencies that occur as a result of production bottlenecks result in delays in order … Read more

Risks Associated With Investing In Debt Securities Debt securities are referred to as debt instruments that are brought or sold between two parties with basic terms defined. The basic terms include the Notional Amount (i.e. the borrowed principal), as well as the interest rate, and the dates (both, maturity date and the date at which … Read more

Accounting For Foreign Exchange Gains And Losses Foreign exchange gains and losses are referred to as losses that are incurred when a company purchases goods and services in foreign currency. The currency fluctuation exists on a normal basis, and as a result of this fluctuation, there is a difference in monetary assets and liabilities, which … Read more