How to Calculate FIFO and LIFO
This enforces that all payments and costs are accounted for according to the number of days they were in use. It is placed on the materials card balance ahead of all the units on hand at the same price as it was issued to the factory. In other words, under FIFO, the cost of materials […]
Period and Product Costs Managerial Accounting
Upgrading to a paid membership gives you access to our extensive collection of plug-and-play Templates designed to power your performance—as well as CFI’s full course catalog and accredited Certification Programs. Double Entry Bookkeeping is here to provide you with free online information to help you learn and understand bookkeeping and introductory accounting. 11 Financial is […]
Understanding the Accounting Equation Formula
This then allows them to predict future profit trends and adjust business practices accordingly. Thus, the accounting equation is an essential step in determining company profitability. The accounting equation plays a significant role as the foundation of the double-entry bookkeeping system. Owner’s Equity In other words, the accounting equation will always be “in balance”. As […]
Paperless Invoice Processing
However, the approval and payment of incoming invoices may be sped up by paperless invoices. Moreover, by reducing paper waste, businesses can contribute to the reduction of landfill congestion and protect natural resources. Paper invoices that are not properly recycled often end up in landfills, where they contribute to the production of methane, a potent […]
How Salvage Value Is Used in Depreciation Calculations
The carrying value of an asset as it is being depreciated is its historical cost minus accumulated depreciation to date. An estimated salvage value can be determined for any how to get salvage value asset that a company will be depreciating on its books over time. Some companies may choose to always depreciate an asset […]
Avoiding the cash trap J P. Morgan Asset Management
In Avoiding the Cash Trap, we identify seven principles to help do exactly that. However, new businesses and companies growing very fast that has a significant need for cash to fund their business operations are at risk of falling into a cash trap if they do not manage their cash flow effectively. The usual monetary […]
Comprehensive Guide to Construction Accounting
By taking these tasks off your plate, you have more time to spend in the field focusing on projects. Partnering on time tracking and project profitability, you will be more prepared to accurately bid projects based on historical information. Managing cash flow will provide a better understanding of where your money is going and coming […]
