Debit Versus Credit Since the late 13th century, people have discussed debit versus credit. Double entry accounting was conceived centuries ago. Now, it is an international standard to record all business transactions with a debit and a credit. This double entry keeps the accounting equation balanced. It also ensures that one account is not left
How to Find the Latest Software for Your Business There are three steps how to find the latest software for your business. Ask Around Ask partners, competitors, and ‘techies’. This will help you see what other companies or organizations are using to solve the same problems that you have. Talking with partners can also be a
See Also: Debits and Credits Double Entry Bookkeeping Debits vs Credits in Accounting When people discuss debit vs credit, they are usually referring to double entry accounting. More specifically, a debit and credit are recorded for each transaction. These two are required for each transaction in order to keep the accounting equation in balance. There
See Also: Return on Invested Capital (ROIC) Return on Common Equity Internal Rate of Return Method Return on Investment (ROI) Definition Return on investment (ROI) is the ratio of profit made in a financial year as a percentage of an investment. In other words, ROI reveals the overall benefit (return) of an investment using the
See Also: Return on Equity Analysis Return on Common Equity (ROCE) Retained Earnings Balance the Balance Sheet Return on Equity Example Shareholders Equity Definition Shareholders equity is an essential part of the accounting equation: Shareholders Equity = Total Assets – Total Liabilities. It is the difference between the value of a company’s assets and liabilities.
See Also:Accrual Based AccountingGenerally Accepted Accounting Principles (GAAP) Cash Accounting vs Accrual Accounting There are two different types of accounting that businesses use: cash accounting vs accrual accounting. Most businesses use accrual accounting, but it varies by the type of business. These two methods are both legal and accepted by the Internal Revenue Service. The primary difference
See Also: Compound Annual Growth Rate (CAGR) Internal Rate of Return Example Impact of FIT on Sustainable Growth Rate Sustainable Growth Rate Definition The sustainable growth rate (SGR) is a company’s maximum growth rate in sales using internal financial resources, while not having to increase debt or issue new equity. Sustainable Growth Rate Explained Companies
Rule of 72 Definition The rule of 72 definition is an approximation tool used to determine the amount of time it will take for money to double on the earnings of compound interest. The Rule of 72 is also used to calculate the rate of return necessary to double an investment in a specific amount
See also: Decision Making Opportunity Cost Definition Opportunity Costs Definition In economics, opportunity costs refer to the value of the next-best alternative use of that resource given limited resources. They are applicable beyond finance and accounting. In daily life, opportunity costs are the benefits or pleasures foregone by choosing one alternative over another. For instance,
Whether in business or in personal life, we can all look in the past and say that we’ve been in situations where we’ve wasted money, time, or energy on things that did not end up being worthwhile. Was there a moment during that situation when you thought about backing out before you sank even deeper?
There is a difference between cost control vs cost reduction. Most people think that controlling costs and reducing costs are one and the same when, in fact, they can generate two totally different outcomes. The first thing you need to know is that you can’t grow a company by cost reduction alone. You can get
In today’s fast-paced business world, most companies use some sort of dashboard or flash report to monitor and improve productivity and other key performance indicators. Despite their wide use, many are still confused on what exactly should be measured and what constitutes a key performance indicator. Using Flash Reports to Improve Productivity What often happens is
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