Category : Bookkeeping

No, work in process starts when human labour interacts with the raw material. One of the major benefits of calculating your WIP inventory is that...

It is imperative for any business to account for the products in the production process, just as it’s essential to account for raw materials and...

If the D/E ratio gets too high, managers may issue more equity or buy back some of the outstanding debt to reduce the ratio. Conversely,...

When your debt ratio becomes too high, it also drives your borrowing costs up. If you haven’t noticed yet, the truth of the matter is...

These newer areas may require reading outside BER; fortunately, summaries of some of these topics can be found in the Current Insights section of the...

Thus, the study subjects would be children of a specific age (e.g., aged 6–10 years). Imenda (2014) contends that the framework “is the soul of...

Management uses this calculation to judge the risk of a department, operation, or product. The smaller the percentage or number of units, the riskier the...

Break-even point (in dollars) equals fixed costs divided by contribution margin ratio. The margin of safety (MoS), also called the safety margin, is an accounting...

Treasury shares are not outstanding, so no dividends are declared or distributed for these shares. Regardless of the type of dividend, the declaration always causes...

As the normal balance of stock investments is on the debit side, this journal entry will decrease the stock investments by the amount of the...