Bookkeeping

By leveraging Xero’s standard costing, manufacturers can streamline cost accounting processes and identify opportunities to optimize production spend. With up-to-date data, manufacturers can make informed decisions to optimize production planning and cost control. On the other hand, what Xero was made for – accounting – it does impeccably. Using accounting software enables companies to achieve […]

How to Identify and Correct Transposition Errors? Errors in Original Entry FAQs If such difference can be divided exactly by 9, the error would be the errors of transposition. Understanding the causes and implementing appropriate solutions for transposition errors is crucial for maintaining data accuracy and preventing potential consequences. By adopting these practices, businesses and […]

Capital, as depicted in the accounting equation, is calculated as Assets – Liabilities of a business. It is an internal liability of the business and includes reserves and profits. Understanding liability accounts is crucial for accurate financial reporting, debt management, and overall financial analysis in what account type is considered a liability? accounting. By properly […]

When a business registers a higher contribution margin value, it would mean that it has enough resources available to meet its variable as well as fixed costs. 1) It helps you determine how much money your business generates on every dollar of sales. You can use this information to determine whether your business is profitable […]

The contribution margin ratio is a useful tool for decision making, as it measures how much each unit of sales contributes to the fixed costs and profits of a business. It can help managers and owners evaluate different scenarios and applications, such as pricing, product mix, breakeven point, and profitability. In this section, we will […]

The deposit may be returned if the item or space is returned in the same condition. For other items, a deposit may be used a partial payment on the balance due. Many checking accounts do not provide interest, while most savings accounts and certificates of deposit (CDs) do. A deposited item returned fee is when someone […]

GAAP does not require common-size balance sheets, nor is the percentage information shown in these financial statements mandated by any regulatory organization. Although the information given is valuable to financial institutions and other lenders. Financial statements of common size are not for use in financial reporting. However, they are beneficial to analysts or investors looking […]

It represents the maximum share that the company able to issue in the future. However, it does not mean that company needs to issue all the authorized shares. The most common form of a stock split is 2-for-1 or 3-for-1, it means one share will be split into 2 or 3 share while the price […]