Cost of Goods Sold Vs Gross Revenue Cost of Goods Sold The cost of goods sold is a crucial metric to understand the financial position of a business, as it directly determines the gross revenue. It includes direct materials, direct labor, and direct expenses that are easily traceable and can be identified from the products … Read more
How To Calculate The Cost Of Goods Sold For A Bakery? Key Takeaways COGS measures costs directly related to producing goods, while COSS measures costs directly related to providing services. Both COGS and COSS do not include indirect costs such as overhead and sales and marketing. Tracking COGS and COSS is important for accurately recording … Read more
Calculating Semi-Monthly Pay Calculating semi-monthly pay can be a tricky process, but with the right tools and information, it doesn’t have to be. No matter what type of job you have or how much money you make, understanding your semi-monthly wages is crucial for financial planning. In this article, we’ll walk you through the steps … Read more
Amount Due To and Amount Due From Are you confused about the differences between “amount due to” and “amount due from”? Don’t worry, you’re not alone. It can be difficult to understand how these two financial terms can affect your business’s finances. The first thing you need to understand is that both amount due to … Read more
Is Accounts Payable An Asset, Liability Or Equity? Accounts payable Accounts payable signify the monetary debts an organization owes to its vendors for goods and services received. They are a liability on the company’s balance sheet, representing the amount of money that the organization owes and therefore must pay out in the future. This amount … Read more
Addition to Retained Earnings Retained earnings are an important part of any successful business. They provide companies with a way to reinvest in themselves and create long-term stability. Adding to retained earnings is when a company adds additional funds to the amount they currently have saved up. This money can be used to invest in … Read more
Advantages of Financial Accounting Financial Account Financial accounting is an important tool for providing an accurate overview of a business’s financial position and performance. It records, summarizes, and reports financial transactions that have occurred over some time. Financial statements such as the balance sheet, income statement, and cash flow statement are prepared to provide insight … Read more
Is Accrued Liabilities A Current Liability? Accrued liability is an expense that has been incurred, but not yet paid out, and is only recognized when using the accrual accounting method. To account for accrued liabilities, a business must debit an expense account and credit an accrued liability account. After payment, the business must credit the … Read more
Advantages and Disadvantages of Cash Flow Statement A cash flow statement (CFS) is an important tool for assessing a company’s financial health, as it provides a clear overview of cash inflows and outflows. It measures if the company has enough cash to pay its bills, invest in new projects, and meet its other financial goals. … Read more
Accumulated Depreciation Formula Depreciation is a common accounting technique used to spread the cost of a tangible asset over its useful life. It is used to show how much of the asset’s value has been used. Companies can use depreciation to generate revenue from assets by paying for them over time. Not accounting for depreciation … Read more