Bookkeeping

Stockholder’s Equity Statement Definition, Examples, Format

Key components include common stock, preferred stock, additional paid-in capital, retained earnings and treasury stock, each reflecting different aspects of equity. Stockholders’ equity is a useful indicator for estimating a company’s net value, but it should be used in conjunction with an examination of all financial documents, including the balance sheet, income statement, and cash […]

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Fixed Asset Turnover Ratio: Definition, Formula & Calculation

Another mistake that companies make is to compare their fixed asset turnover ratio to industry benchmarks without considering the unique characteristics of their own business. Each company has its own set of circumstances, such as the age and condition of its fixed assets, that can impact the ratio. A low ratio suggests that the company

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Chart of Accounts Optimization: The First Step in ..

Think of debts to suppliers, loans from banks, or unpaid expenses – they are your liabilities. The total assets amount represents the value of all the company’s resources. When a company purchases inventory on credit, the Inventory account is debited to increase it, and the Accounts Payable account is credited to record the liability to

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