How to Read & Understand a Balance Sheet

Its liabilities will also increase by $8,000, balancing the two sides of the accounting equation. Explore our online finance and accounting courses, which can teach you the key financial concepts you need to https://www.kelleysbookkeeping.com/ understand business performance and potential. The information found in a company’s balance sheet is among some of the most important for […]

What is beginning inventory: beginning inventory formula

This method is best for businesses with products that vary greatly in size and value. There is no formula for this method, all you need to do is tag each and every item with its purchase value and incurred value until it is sold. Beginning inventory looks different for manufacturers and for retailers. For a […]

How to calculate average accounts receivable

The accounts receivable turnover ratio is an efficiency ratio and is an indicator of a company’s financial and operational performance. A high ratio is desirable, as it indicates that the company’s collection how to calculate dividend yield with a formula of accounts receivable is frequent and efficient. A high accounts receivable turnover also indicates that […]

Defined: Opportunity Cost, Plus Examples and Calculation

In other words, by investing in the business, the company would forgo the opportunity to earn a higher return—at least for that first year. What does opportunity cost have to do with a business’s capital structure? If you finance your capital through debt, you have to pay it back even if you aren’t making any […]