Accounting Tools

JUNE 19, 2023

Amortization is the process of incrementally charging the cost of an asset to expense over its expected period of use, which shifts the asset from the balance sheet to the income statement. Amortization is most commonly used for the gradual write-down of the cost of those intangible assets that have a specific useful life.

Auditing 75

Auditing Accounting Accounting 75

Accounting Tools

OCTOBER 20, 2023

If there is no way to estimate a useful life, then do not depreciate the cost of the improvements. If land is being prepared for its intended purpose, then include these costs in the cost of the land asset. Examples of such costs are demolishing an existing building, and clearing and leveling the land.

Accounting 74

Accounting Accounting Auditing 74

Counto

MARCH 3, 2024

How much does it cost to run my business? Understanding every cost and financial liability associated with your business is crucial. Ignoring these costs can deplete your working capital and jeopardise sustainability. What is the cost and income per unit for my business?

Payroll 52

Payroll Budgeting Tax Accounting 52

Counto

FEBRUARY 15, 2024

Enhance flexibility: Negotiate early settlement discounts with suppliers, effectively reducing costs and improving margins. Paying Invoices Prematurely: Paying invoices well before their due dates can deplete working capital unnecessarily, affecting cash flow forecasts and profitability.

Collections 97

Collections Accounts Receivable Accounts Receivable Account Receivables 97

Accounting Tools

AUGUST 6, 2023

Illusory profits are generated when there is a difference between historical costs and current costs. These profits are largest when costs are rising or when a firm has a large asset base. Thus, the profits reported have only occurred because the firm had a large store of assets that were acquired at a lower cost.

Financial Analysis 40

Financial Analysis Financial Statements 40

FinOps in Practice

SEPTEMBER 1, 2022

However, we will never get tired of repeating that you need to use the capabilities of cloud services correctly, because over time, costs that are more than reasonable at first, tend to increase over time and grow to tangible sizes, especially if this process is left to chance. Why use Microsoft Azure? Find out more on this page.

FinOps 130

FinOps FinOps Billing Computation 130

Accounting Tools

JULY 29, 2023

Related Courses Activity-Based Costing Cost Accounting Fundamentals What is the Total Fixed Cost Formula? The total fixed cost formula is really an aggregation of all fixed costs that an organization incurs. These costs can be identified by examining all types of costs as activity volumes change.

Cost Accounting 40

Cost Accounting Accounting Accounting 40

Accounting Tools

DECEMBER 22, 2023

During this period, the bottleneck instead uses parts from its inventory buffer, which is therefore depleted. Related Articles Budgeted Capacity Excess Capacity Opportunity Cost of Operations The Theory of Constraints Throughput Accounting Throughput Analysis

Budgeting 40

Budgeting Accounting Accounting 40

Accounting Tools

APRIL 29, 2024

An out of stock condition can cost a company a sale , so these items are usually closely monitored. It can also arise when customer orders have been higher than expected, so that all on-hand inventory is depleted. Related Articles Back Order How to Reduce Inventory Safety Stock Stockout Stockout Cost

Accounting 40

Accounting Accounting 40

Accounting Tools

AUGUST 4, 2023

The basic concept underlying perpetual LIFO is the last in, first out (LIFO) cost layering system. Comparing Perpetual LIFO and Periodic LIFO The only difference between the two cost flow concepts is how rapidly a cost layer is stripped away or replenished in the costing database.

Auditing 40

Auditing Accounting Accounting 40

Accounting Tools

OCTOBER 14, 2023

Also, the measurement can be misleading if calculated during a seasonal spike in sales, since the formula will match high sales with a depleted inventory level to produce an unusually high ratio. Related Articles Asset Turnover Ratio Days Working Capital Operating Assets Ratio Sales to Working Capital Ratio Variable Cost Ratio

Financial Statements 40

Financial Statements Accounts Payable Accounts Payable Accounts Receivable 40

Accounting Tools

DECEMBER 23, 2023

Depreciation , depletion , or amortization may be used to gradually reduce the amount of a noncurrent asset on the balance sheet. Also, most current assets are valued at their market values on the balance sheet, whereas noncurrent assets are generally valued at their acquisition cost.

Financial Statements 40

Financial Statements Computation Accounting Accounting 40

Accounting Tools

JUNE 7, 2023

Cash Flows from Operating Activities This is cash both generated and used by the basic operations of a business, such as cash receipts from customers and expenditures for cost of goods sold and administrative expenses. Net cash flow is comprised of three forms of activities, which are noted below.

Accruals 73

Accruals Financial Statements Accounting Accounting 73

Accounting Tools

JANUARY 13, 2024

Depreciation is the systematic reduction of the recorded cost of a fixed asset. The only exception is land, which is not depreciated (since land is not depleted over time, with the exception of natural resources). Depreciation is calculated based on the asset cost, less any estimated salvage value.

Accounting 40

Accounting Accounting Auditing Tax 40

Accounting Tools

SEPTEMBER 2, 2023

If the company were to produce more engines, the engines would not contribute to more tractors being built; there would only be an increase in the number of engines in storage, which increases the cost of working capital. During this period, the bottleneck instead uses parts from its inventory buffer, which is therefore depleted.

40

40

Counto

FEBRUARY 4, 2024

Expected Cash Outflows: All projected expenses, such as rent, salaries, taxes, and operational costs. Net Cash Flow: The difference between cash inflows and outflows, indicating whether your cash reserves are growing or depleting. Closing Balance: The expected cash balance at the end of each period.

Collections 52

Collections Tax Accounts Payable Accounts Payable 52