Kategori: Bookkeeping

Inefficient use of the cost driver used to apply variable manufacturing overhead typically results in additional overhead costs. The completed top section of the template contains all the numbers needed to compute the direct labor efficiency (quantity) and direct labor rate (price) variances. The direct labor efficiency and rate variances are used to determine if…

This is because of the way accounts are credited and debited under accrual accounting. An up-to-date profit and loss statement helps you keep an eye on your business’s financial health so you can identify cash flow issues before they become a problem. A profit and loss statement describes how profitable your business is. Earnings before…

When it comes to analyzing the financial health of your company, you need to be familiar with all aspects of the financial statements. Working with your bookkeeper, you can ensure that these statements are accurate and up-to-date with every analysis. To understand a company’s financial position, you should review and analyze the financial statements to…

In the banking and financial services sector, a relatively high D/E ratio is commonplace. Banks carry higher amounts of debt because they own substantial fixed assets in the form of branch networks. Higher D/E ratios can also tend to predominate in other capital-intensive sectors heavily reliant on debt financing, such as airlines and industrials. Debt-financed…

From Year 1 to Year 5, the D/E ratio increases each year until reaching 1.0x in the final projection period. Cheaper Than Equity Financing The growing reliance on debt could eventually lead to difficulties in servicing the company’s current loan obligations. What counts as a “good” debt-to-equity (D/E) ratio will depend on the nature of…

In the banking and financial services sector, a relatively high D/E ratio is commonplace. Banks carry higher amounts of debt because they own substantial fixed assets in the form of branch networks. Higher D/E ratios can also tend to predominate in other capital-intensive sectors heavily reliant on debt financing, such as airlines and industrials. Debt-financed…

From Year 1 to Year 5, the D/E ratio increases each year until reaching 1.0x in the final projection period. Cheaper Than Equity Financing The growing reliance on debt could eventually lead to difficulties in servicing the company’s current loan obligations. What counts as a “good” debt-to-equity (D/E) ratio will depend on the nature of…

In promissory note receivables accounting there are a number of journal entries needed to record the note receivable itself, accrued interest income, and finally the honoring (payment) of the note receivable by the third party. When a promissory note is accepted, it is accounted as a note receivable, which becomes a current asset if it…

After 60 days of non-payment, notes payable are issued to MPC by RSP Co. for USD60,000 at an interest rate of 10% per annum and with a payment of USD20,000 due at the end of each of the next 90 days. If the note receivable is due within a year, it’s treated as a current…