See Also: How to Develop a Daily Cash Report Cash Flow Projections Discounted Cash Flow Analysis Cash Flow Statement Free Cash Flow Analysis Track Money In and Out of a Company We have all heard CASH IS KING and HE WHO HAS THE GOLD RULES. I was talking with a business owner of a growing
See Also: General Ledger Reconciliation and Analysis Account Reconciliation Ledger Account Subsidiary Ledger Definition The subsidiary ledger is a chart of specific accounts that are not included in the general ledger. The accounts in the subsidiary ledgers hold more specific information about the accounts that make up the general ledger. However, do not include the
Subsequent Events Definition The definition of a subsequent events are generally defined as events that occurs after the year end period but before the financial statements have been issued. A subsequent event falls underneath the disclosure principle and can be confusing to many accountants that encounter them. However, the codification provides guidance under ASC 855
See Also: What do Lenders Really Look at What Does a Lender Want to Know Don’t Tell Your Lender Everything Due Diligence on Lenders Every Business Has a Funding Source, Few Have a Lender Relationship With Your Lender The question I get most often from people is “What affects my relationship with my lender the
See Also: Accounting Income vs Economic Income Capital Gains Proforma Earnings Operating Income Net Income Asset Market Value vs Asset Book Value Realized and Unrealized Gains and Losses Explanation In accounting, there is a difference between realized and unrealized gains and losses. Realized income or losses refer to profits or losses from completed transactions. Unrealized
Return on Common Equity (ROCE) Definition The return on common equity, or ROCE, is defined as the amount of profit or net income a company earns per investment dollar. The investment dollars differ in that it only accounts for common shareholders. This is often beneficial because it allows companies and investors alike to see what sort of
Quick Ratio Analysis Definition The quick ratio, defined also as the acid test ratio, reveals a company’s ability to meet short-term operating needs by using its liquid assets. It is similar to the current ratio, but is considered a more reliable indicator of a company’s short-term financial strength. The difference between these two is that
See Also: Return on Asset Analysis Return on Equity Analysis Financial Ratios Return on Invested Capital (ROIC) Current Ratio Analysis Return on Capital Employed (ROCE) Definition The return on capital employed ratio is used as a measurement between earnings, and the amount invested into a project or company. Return on Capital Employed (ROCE) Meaning The
See Also: Accounting Income vs Economic Income Realized and Unrealized Gains and Losses Operating Income Overhead Definition Retained Earnings Retained earnings (RE) refers to the portion of a company’s net income that is reinvested in the company. It is also the amount of profit left over after the company pays dividends to its stockholders. Record
Quick Ratio Analysis Benchmark Example Quick ratio calculation is a useful skill for any business that may face cash flow issues. Furthermore, quick assets include those current assets that presumably can be quickly converted to cash at close to their book values. It normally includes cash, marketable securities, and some accounts receivables. Current liabilities represent
See Also: Proforma Earnings Balance Sheet Cash Flow Statement Free Cash Flow Variance Analysis Pro-Forma Financial Statements Definition In accounting, pro-forma financial statements are hypothetical financial reports that show either forecasts of or alterations to actual financial statements. Pro-forma financial statements show the financial statements of a company in a hypothetical scenario that has not
See Also: Pro-Forma Financial Statements Retained Earnings EBITDA Operating Income (EBIT) Financial Ratios Proforma Earnings Definition Pro forma earnings are a company’s earnings that exclude rare, extraordinary, or nonrecurring items. Companies may incur expenses that do not reflect typical operating expenses. These expenses, which must be disclosed in financial statements in accordance with GAAP standards,
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