Accounting Tools

FEBRUARY 13, 2024

Related AccountingTools Courses Financial Analysis Managerial Economics Estimation of Opportunity Cost Opportunity cost cannot always be fully quantified at the time when a decision is made. Opportunity cost is not an accounting concept, and so does not appear in the financial records of an entity.

Financial Analysis 75

Financial Analysis Financial Records Accounting Accounting 75

Accounting Tools

MARCH 25, 2024

This definition relates to the perceived benefit that management believes it can obtain from the additional unit. An example of this definition is the cost of paying overtime to employees to stay on the job and operate a production line for one more hour. Related Article Pricing Strategies

Financial Analysis 40

Financial Analysis 40

Accounting Tools

MAY 12, 2024

Related AccountingTools Courses Cost Accounting Fundamentals Financial Analysis Related Articles Allowable Costs Committed Cost Direct Cost Incremental Cost Unavoidable Cost Training can usually be curtailed for extended periods of time, though doing so can reduce the level of employee expertise.

Financial Analysis 75

Financial Analysis Cost Accounting Tax Accounting 75

Accounting Tools

MARCH 2, 2024

This can be done by shrinking the amount of accounts receivable and/or inventory outstanding. It is also possible to improve the equity spread by reducing the cost of equity, such as by retiring preferred stock that has a high fixed dividend rate.

Financial Analysis 40

Financial Analysis Financial Statements Accounts Receivable Accounts Receivable 40

Accounting Tools

MAY 9, 2024

In this situation, qualitative factors tend to be addressed after a "hard" quantitative analysis has already been completed. This involves creating a tightly-defined definition of the decision. Related Articles Financial Analysis Financial Ratio Analysis Incremental Analysis Make or Buy Analysis Sales Trend Analysis Trend Analysis

Financial Analysis 40

Financial Analysis Tax 40

Accounting Tools

NOVEMBER 26, 2023

Thus, trend analysis is quite useful for examining preliminary financial statements for inaccuracies, to see if adjustments should be made before the statements are released for general use. Related Articles Incremental Analysis Quantitative Analysis Sales Trend Analysis Types of Financial Analysis

Financial Analysis 75

Financial Analysis Financial Statements Expense Reports Budgeting 75

Accounting Tools

APRIL 24, 2024

Consequently, any financial analysis of results by month should factor in the number of business days in each of the reporting periods being analyzed. Terms Similar to Reporting Period A reporting period is the same as an accounting period. The result is a further difference in activity levels by month.

Financial Statements 71

Financial Statements Financial Analysis Financial Reporting Bookkeeping 71

Accounting Tools

OCTOBER 24, 2023

Related Courses Business Ratios Guidebook Effective Sales Management Financial Analysis The Interpretation of Financial Statements What is Sales Volume? Sales volume is the number of units sold within a reporting period. This figure is monitored by investors to see if a business is expanding or contracting.

Financial Analysis 75

Financial Analysis Financial Statements Billing 75

Accounting Tools

JUNE 12, 2023

Related Courses Cost Accounting Fundamentals Financial Analysis Operations Management How to Calculate Efficiency The efficiency equation is a comparison of the work output from an operation to the work input to that same operation. The concept has been most thoroughly formalized in cost accounting , as noted below.

Financial Analysis 75

Financial Analysis Cost Accounting Accounting Accounting 75

Accounting Tools

JULY 20, 2023

Related Courses Capital Budgeting Financial Analysis What is the Accounting Rate of Return? The accounting rate of return is the expected rate of return on an investment. In essence, then, profit is calculated using the accrual basis of accounting , not the cash basis.

Accruals 40

Accruals Accounting Accounting Financial Analysis 40

Accounting Tools

MARCH 30, 2023

Related Courses Business Ratios Guidebook Financial Analysis The Interpretation of Financial Statements What is the Book Value of Debt? The book value of debt is comprised of the following line items on an entity’s balance sheet : Notes payable. Found in the current liabilities section of the balance sheet. Long-term debt.

Financial Analysis 75

Financial Analysis Financial Statements Accounts Payable Accounts Payable 75

Accounting Tools

APRIL 12, 2024

Related AccountingTools Courses Capital Budgeting Financial Analysis Related Article Risk-Adjusted Discount Rate The term also refers to the interest rate that the Federal Reserve Bank charges to depository institutions that take loans from the Fed's discount window.

Financial Analysis 40

Financial Analysis Budgeting 40

Accounting Tools

AUGUST 2, 2023

Related Courses Capital Budgeting Financial Analysis Investing Guidebook What is the Effective Rate of Return? Related Articles Average Rate of Return The Accounting Rate of Return The Expected Rate of Return The Required Rate of Return The Simple Rate of Return The Time-Adjusted Rate of Return

Financial Analysis 40

Financial Analysis Budgeting Accounting Accounting 40

Accounting Tools

DECEMBER 22, 2023

This concept is most commonly found at the financial analysis stage of a capital investment, where the projected cash flows of a proposed investment are examined. Negative IRR occurs when the aggregate amount of cash flows caused by an investment is less than the amount of the initial investment.

Financial Analysis 40

Financial Analysis Budgeting 40

Accounting Tools

APRIL 17, 2024

This analysis can lead to more robust products, once management realizes that sturdier products incur lower warranty and field servicing costs. Related AccountingTools Courses Capital Budgeting Financial Analysis Purchasing Guidebook Related Article Lifetime Cost

Customer Service 75

Customer Service Budgeting Financial Analysis Cost Accounting 75

Accounting Tools

DECEMBER 22, 2023

Related AccountingTools Courses Excel Formulas and Functions Financial Analysis Introduction to Excel Example of the Present Value Factor ABC International has received an offer to be paid $100,000 in one year, or $95,000 now. ABC's cost of capital is 8%.

Financial Analysis 75

Financial Analysis Budgeting 75

Accounting Tools

NOVEMBER 2, 2023

Related Courses Capital Budgeting Corporate Finance Financial Analysis What is the Opportunity Cost of Capital? The opportunity cost of capital is the incremental return on investment that a business foregoes when it elects to use funds for an internal project, rather than investing cash in a marketable security.

Financial Analysis 74

Financial Analysis Corporate Finance Budgeting 74

Accounting Tools

MARCH 28, 2024

Related AccountingTools Courses Corporate Finance Financial Analysis The Interpretation of Financial Statements Related Articles Leverage Ratios Leveraged Lease This issue can be mitigated by restricting the amount of debt that a business takes on, as well as by maintaining a reasonable cash reserve.

Corporate Finance 40

Corporate Finance Financial Analysis Financial Statements Tax 40

Accounting Tools

DECEMBER 28, 2023

Related AccountingTools Courses Excel Charts and Visualizations Financial Analysis Guide to Analytical Procedures The Interpretation of Financial Statements Related Articles Extrapolation Sales Trend Analysis Trend Analysis

Financial Analysis 40

Financial Analysis Financial Statements Budgeting 40

Accounting Tools

AUGUST 3, 2023

Related Courses Effective Sales Forecasting Financial Analysis Financial Forecasting and Modeling What is Quantitative Analysis? Quantitative analysis is the use of mathematical models to analyze data points, with the intent of understanding a condition.

Financial Analysis 40

Financial Analysis Budgeting 40

Accounting Tools

APRIL 8, 2024

Related AccountingTools Courses Accounting for Inventory Cost Accounting Fundamentals Financial Analysis Example of an Avoidable Cost If a company president chooses to close a production line, then the cost of the building in which it is housed is now an avoidable cost, because the company can now sell the building.

Financial Analysis 40

Financial Analysis Cost Accounting Accounting Accounting 40

Accounting Tools

JULY 25, 2023

Related Courses Corporate Finance Financial Analysis What is the Annualized Rate? Related Articles Average Rate of Return Rate of Return The Accounting Rate of Return The Effective Rate of Return The Simple Rate of Return The Time-Adjusted Rate of Return

Financial Analysis 40

Financial Analysis Corporate Finance Computation Accounting 40

Accounting Tools

JUNE 10, 2023

Related Courses Essentials of Business Math Financial Analysis What is Quantification? In business, accounting systems have been designed to measure specific attributes of business transactions , which are then aggregated into financial statements. Quantification is the expression of an event in numeric terms.

Financial Statements 40

Financial Statements Financial Analysis Accounting Accounting 40

Accounting Tools

JULY 19, 2023

Related Courses Financial Analysis What is Seasonality? When reviewing the results of a business, the analyst must take into account the impact of seasonality on reported results. When reviewing the results of a business, the analyst must take into account the impact of seasonality on reported results.

Financial Analysis 40

Financial Analysis Budgeting Accounting Accounting 40

Accounting Tools

JUNE 7, 2023

Related Courses Fixed Asset Accounting How to Audit Fixed Assets What is Accelerated Depreciation? Financial Analysis Effects of Accelerated Depreciation From a financial analysis perspective, accelerated depreciation tends to skew the reported results of a business to reveal profits that are lower than would normally be the case.

Financial Analysis 75

Financial Analysis Record Keeping Tax Auditing 75

Accounting Tools

FEBRUARY 12, 2024

Related AccountingTools Courses Corporate Finance Financial Analysis The Interpretation of Financial Statements Related Article Leverage Ratios After one year, he finds that the actual net after-tax return on his purchase of the manufacturing company is just 3%.

Corporate Finance 40

Corporate Finance Financial Analysis Financial Statements Tax 40

Accounting Tools

MAY 18, 2024

For the purposes of this specific production-increase decision, then, the associated direct costs are: Related AccountingTools Courses Cost Accounting Fundamentals Financial Analysis When to Use Direct Costing Direct costing is of great use as an analysis tool. Direct costing is an excellent analysis tool.

Financial Statements 52

Financial Statements Financial Reporting Financial Analysis Cost Accounting 52

Accounting Tools

APRIL 18, 2023

Related Courses Business Ratios Guidebook Financial Analysis The Interpretation of Financial Statements What is Net Profit Margin? Accounting compliance. A company may accrue revenue and expense items to be in compliance with various accounting standards, but this may give an incorrect picture of its cash flows.

Financial Analysis 75

Financial Analysis Financial Statements Tax Accounting 75

Accounting Tools

NOVEMBER 20, 2023

This level of detailed variance analysis allows management to understand why fluctuations occur in its business, and what it can do to change the situation. In other words, put most of the variance analysis effort into those variances that make the most difference to the company if the underlying issues can be rectified.

Budgeting 75

Budgeting Financial Analysis Billing Cost Accounting 75

Accounting Tools

JULY 30, 2023

Related Courses Financial Analysis Financial Analysis Education Bundle The Balance Sheet What are Average Total Assets? Average total assets is defined as the average amount of assets recorded on a company's balance sheet at the end of the current year and preceding year.

Financial Analysis 40

Financial Analysis 40

Accounting Tools

JUNE 8, 2023

Related Courses Activity-Based Costing Cost Accounting Fundamentals Financial Analysis What is a Mixed Cost? This is also a key concern when developing budgets, since some mixed costs will vary only partially with expected activity levels, and so must be properly accounted for in the budget.

Budgeting 75

Budgeting Financial Analysis Cost Accounting Accounting 75

Accounting Tools

DECEMBER 10, 2023

How to Calculate Net Operating Assets The formula to calculate net operating assets is as follows: + The total assets of a company - All liabilities - All financial assets + All financial liabilities = Net operating assets This definition shows that all finance-related items are to be extracted from assets and liabilities.

Financial Statements 40

Financial Statements Accounts Payable Accounts Payable Accounts Receivable 40

Accounting Tools

JULY 23, 2023

Related Courses Cost Accounting Fundamentals Financial Analysis What is Cost? Cost is the expenditure required to create and sell products and services, or to acquire assets. When sold or consumed, a cost is charged to expense. In the case of an asset, the charge to expense could be significantly deferred.

Financial Analysis 40

Financial Analysis Cost Accounting Accounting Accounting 40

Accounting Tools

JULY 21, 2023

Related Courses Financial Analysis The Interpretation of Financial Statements What is Percent Variance? A percent variance presents the proportional change in an account balance from one reporting period to the next. Thus, it shows the change in an account over a period of time as a percentage of the account balance.

Financial Analysis 40

Financial Analysis Budgeting Financial Statements Accounting 40

Accounting Tools

AUGUST 23, 2023

Related Courses Financial Analysis What is Marginal Revenue? Marginal revenue is the additional revenue generated by the sale of one extra unit. The concept is frequently used to determine whether special pricing deals are worthwhile. For example, a business can sell 10 units for a total of $100, which is $10 each.

Financial Analysis 40

Financial Analysis 40

Accounting Tools

JUNE 19, 2023

Related Courses Budgeting Financial Analysis Financial Forecasting and Modeling What is Relevant Range? Cost Accounting Relevant Range The assumed cost of a product, service, or activity is likely to be valid within a relevant range, and less valid outside of that range.

Financial Analysis 40

Financial Analysis Budgeting Cost Accounting Accounting 40

Accounting Tools

NOVEMBER 4, 2023

Related Courses Financial Analysis The Interpretation of Financial Statements What is a Breakeven Chart? A breakeven chart is a chart that shows the sales volume level at which total costs equal sales. Losses will be incurred below this point, and profits will be earned above this point.

Financial Analysis 40

Financial Analysis Financial Statements 40