COGS and the Balance Sheets for a Service Based Business If you are running a business with inventory, it’s easy to understand the G in COGS (Cost of Goods Sold). But if your Goods are employee time, how do you note your goods in the P&Ls? How do you list the time on your balance
See also: Problems in Chart of Account Design Complex COA Number for SGA Expenses Example Chart of Accounts for Selling General and Administrative Account Reconciliation Account Reconcilement Definition Chart of Accounts Defined The chart of accounts (COA) is a listing of the general ledger accounts used by an organization to record transactions. For example, the
See Also: Cash Flow Statement Statement of Financial Accounting Standards (SFAS) What is GAAP? Daily Cash Flow Forecast Prepare an Investor Package Cash Flow Statement Example For example, Saundra has started providing angel investment to promising start-up businesses. Operating under the name Angelco, she is using the wealth she built in her professional career to
See Also: Financial Ratios Cash Flow After Tax How to Create Dynamic Cash Flow Projections Steps to Track Money In and Out of a Company EBITDA Definition Cash Flow Statement Definition The cash flow statement definition is a financial statement that shows a company’s cash inflows and cash outflows over a period of time. The
See also: Capitalize Interest Expense Interest Rate Generally Accepted Accounting Principles (GAAP) Financial Accounting Standards Board (FASB) Capitalized Interest Definition The capitalized interest definition is the interest on the cost of construction, or a self constructed asset by a company. Interest capitalization occurs because it is a part of the cost in developing the asset for the
See Also: Capitalization Capitalized Interest Operating Capital Lease Agreements Capital Lease Agreement Capitalize Definition The Capitalize Definition is the act of classifying an expense or charge as a long term investment. This usually occurs for the purchase of long term assets like equipment. Capitalize Meaning Look further into the capitalize meaning… If a company capitalizes
See Also: Company Life Cycle Market Positioning Insider Trading Dispersion Adjusted Present Value (APV) Method of Valuation Capitalization Rate Capitalization in Finance In finance, capitalization in finance is the sum of a company’s debt and equity. It represents the capital invested in the company, including bonds and stocks. Capitalization can also mean market capitalization. Market
See Also: Fixed Assets Current Liabilities Long Term Debt Sale and Leaseback Working Capital Secured Claim Capital Lease Agreement A capital lease is a type of long-term lease agreement. A capital lease is recorded on the lessee’s balance sheet. This type of lease typically spans most of the useful life of the asset. In a
Capital Expenditures Definition What are capital expenditures? What is CAPEX? Capital expenditures, or CAPEX, refer to spending used to purchase or improve long-term assets, such as buildings or equipment. CAPEX are in contrast to current expenditures, which refer to spending on short-term assets. Capitalize and amortize capital expenditures over their useful life. Whereas, you expense
See Also: Accounting Income vs Economic Income Economic Value Added Value Drivers:Building Reliable Systems to Sustain Growth Basis Definition Variance Analysis Goodwill Impairment Asset Market Value versus Asset Book Value Book value and market value are two ways to value an asset. An asset’s book value can differ from its market value. Market value is the
See Also: Accounting Principles 1, 2, & 3 Accounting Principles 5, 6, & 7 Probable Losses Subsequent Events Accounting Changes Business Segment Definition Define a business segment as an area of operation in which a company has an established separate product line or industry in which the company operates. For example, General Electric operates in
In accounting, amortization refers to the periodic expensing of the value of an intangible asset. Similar to depreciation of tangible assets, intangible assets are typically expensed over the course of the asset’s useful life. It represents reduction in value of the intangible asset due to usage or obsolescence. Basically, intangible assets decrease in value over time, and amortization
JOIN THE NEXT STRATEGIC CFO™ WORKSHOP SERIES
Strategic CFO™ Financial Leadership Workshop
The Art Of The CFO®
August 7-10th, 2023
CONNECT WITH STRATEGIC CFO™
