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advertising Get “AccountingCoach Pro” only with $49 (one-time payment) to master this knowledge point. Start our free accounting course Now!Depreciation is a method of applying the matching or accruals concept to the cost of non-current assets. A non-current asset is an asset intended ofr use on a continuing basis in the business. It can be [...]
advertising Get “AccountingCoach Pro” only with $49 (one-time payment) to master this knowledge point. Start our free accounting course Now!Net cash flow from financing activities comprise receipts or repayments of principal from or to external providers of finance. It can help the investors and creditors estimate the claim for the cash flow of the company [...]
advertising Get “AccountingCoach Pro” only with $49 (one-time payment) to master this knowledge point. Start our free accounting course Now!As known, profit before tax is using the accruals concept, but net cash flow from operating activities only records the cash inflows and outflows according to the trading. Some operating activities impact profit before tax, but [...]
advertising Get “AccountingCoach Pro” only with $49 (one-time payment) to master this knowledge point. Start our free accounting course Now!Firstly, we should analyse the structure of cash flow statement. As known, cash flow statement is divided into three parts: operating cash flow, investing cash flow and financing cash flow. And in operating cash flow, there’re [...]
advertising Get “AccountingCoach Pro” only with $49 (one-time payment) to master this knowledge point. Start our free accounting course Now!The balance sheet shows the financial situation of a company at a point in time (the balance sheet date), but the income statement reflects the operational results of the company over a period of time.
advertising Get “AccountingCoach Pro” only with $49 (one-time payment) to master this knowledge point. Start our free accounting course Now!Net cash flow from operating activities represents the net increase or decrease in cash form the operations. There are two methods: the direct and indirect method of cash flow. The direct and indirect method of cash [...]
advertising Get “AccountingCoach Pro” only with $49 (one-time payment) to master this knowledge point. Start our free accounting course Now!Cash concludes cash on hand and demand deposits. Cash equivalents are short-term, highly liquid investments that can be convertible into readily known amounts of cash, which are insignificant risk of value changing. Bank overdrafts may be [...]
advertising Get “AccountingCoach Pro” only with $49 (one-time payment) to master this knowledge point. Start our free accounting course Now!Trading profit margin = Trading profit(before interest, investment income and tax)/Sales revenue*100% It can describe more accurately the trading performance. Trading profit is gross profit minus interest, investment income and tax. It is equally useful and [...]
advertising Get “AccountingCoach Pro” only with $49 (one-time payment) to master this knowledge point. Start our free accounting course Now!Gross profit percentage = Gross profit/Sales revenue*100% Higher gross profit percetage often means good sign for the company. A company should keep enough gross profit percentage in its business. Because gross profit = revenue – cost [...]
advertising Get “AccountingCoach Pro” only with $49 (one-time payment) to master this knowledge point. Start our free accounting course Now!Return on capital employed(ROCE) is known as the primary ratio because it’s the most important measure of profitability. The ratio shows how efficiently a business is using its resources. Return on capital employed(ROCE) = Profit/Capital employed*100%
