Bookkeeping

Whether negative stockholder’s equity is indicative of a larger problem usually requires taking a closer look at the company’s financials. Buybacks, for example, can push stockholders’ equity into negative territory in the short term but benefit the company financially in the long run. In terms of payment and liquidation order, bondholders are ahead of preferred […]

Learning how to read and use your bank statement can give you a deeper understanding of where your money has come from and gone. It can also help you keep your account squared away and avoid costly spending mistakes. Whether you get a physical or electronic copy of your statement, it’s the same document with […]

In some cases, it may be possible to use alternative materials that cost less than traditional direct materials. For example, if you’re manufacturing furniture made from wood, you could consider using particle board or laminate instead. Of course, you’ll need to weigh the cost savings against any potential quality issues before deciding. If any carriage […]

If the amount is payable within one year, then this line item is classified as a current liability on the balance sheet. When you want to present a summarized balance sheet, the accrued vacation pay line item is typically combined into the accrued expenses line item. Suppose John Smith wants to use 50 hours of […]

Dispel myths and misconceptions surrounding the calculation of annual income. Gain clarity on common pitfalls and errors to ensure accurate financial assessments. Explore how investments contribute to your annual income and the importance of factoring in returns, dividends, and capital gains. Annual gross income and adjusted gross income (AGI) aren’t typically the same. According to […]