Category Archives: Bookkeeping

Accounts Receivables Ledger What Is It, Template

If no accounts receivable ledger is maintained, then all transactions will be recorded on the general ledger. Again, it’s important that the total balance of the subsidiary ledger correlates to the accounts receivable balance in the general ledger. Though keeping an accounts receivable subsidiary ledger in addition to a general ledger requires more work and […]

Contribution Analysis Overview, Formula, Pros Cons

A mobile phone manufacturer has sold 50,000 units of its latest product offering in the first half of the fiscal year. The selling price per unit is $100, incurring variable manufacturing costs of $30 and variable selling/administrative expenses of $10. As a result, the contribution margin for each product sold is $60, or a total […]

Top 5 Accounting Software For Independent Contractors

RSMeans Data Online is an industry-standard database for construction cost data. It’s ideal for estimators who need access to up-to-date material, labor, and equipment pricing by region or project type. Rather than a full project management tool, RSMeans focuses on delivering trusted data that enhances accuracy across estimating workflows. Houzz Pro is a sleek, all-in-one […]

Cash Flow Statement Direct Method

Due to the lack of automation and robust tracking mechanisms, treasury professionals often spend considerable time tracking cash transactions. They do so by manually reconciling the expected cash transactions with the bank statements, which often leads to inaccurate results, a lack of cash visibility, and decreased productivity. When operating activities cash flow is analyzed using […]

Income Statement Examples for Better Insights

Liquidity ratios are a crucial part of your financial reports, and banks take them very seriously. They help assess your ability to settle short-term liabilities without needing additional cash inflows. Profitability metrics are a crucial part of your financial reports, reflecting your business’s ability to generate earnings and manage expenses effectively. Ratio analysis compares line-item […]

Natural Resources and Depletion Financial Accounting

This process is not only essential for financial reporting but also for operational and strategic planning. Different methods and models are employed to calculate depletion, each with its own set of assumptions and applications. Understanding these methods is crucial for stakeholders, including investors, environmentalists, and policymakers, as they offer insights into the sustainability and profitability […]

Understanding Capital As a Factor of Production

They introduce new products, improve existing ones, and find more efficient ways to produce goods and services, thereby driving economic progress. The extraction and utilization of natural resources is vital for the production of goods and services, which is essential for the growth of any economy. However, natural resource extraction and utilization require a significant […]

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