A Decrease in Accounts Payable What is an account payable and what does it include? Accounts payable is the amount of money a company owes to its suppliers for goods and services that have been purchased on credit. Accounts payable is considered a short-term liability, as the debt is typically due within one year. Accounts … Read more
Acceptable Depreciation Methods under IFRS Depreciation expense is an accounting term that refers to the allocation of the cost of a long-term asset over its useful life. depreciation expense is used to record the wear and tear, or obsolescence, of a long-term asset. For example, if a company buys a new factory for $1 million, … Read more
True Up In Accounting With the development of accounting, it has become increasingly difficult for companies to gain a comprehensive overview. The ultimate goal is to ensure that all stakeholders have access to reliable information on financial documents. Accounting professionals must work towards improving users’ experiences by providing accurate insight – both internally and externally … Read more
How to Calculate Modified Internal Rate of Return This article will cover how to calculate the modified internal rate of return (MIRR). This includes key definitions, formulas as well as and example calculations that can help you understand this process better. IRR is an important technique in project evaluation. All cash flows arising from a … Read more
What Is Variable Overhead Rate Variance? The difference between the budgeted and actual rates of spending for variable overhead is called a variance. This variance is the variable overhead rate variance. As an accountant, you need to be aware of the changing costs that can affect your bottom line. The difference between what you budgeted … Read more
Direct Overhead Direct overhead refers to the costs that are associated with running a business on a day-to-day basis. It is comprised of a variety of expenses that are necessary for the operation of a business, including utilities, rent, materials and labor. Direct overhead costs can vary from business to business and are typically dependent … Read more
Is Accounting harder than Nursing? Accounting vs Nursing Accounting and nursing are two professions that require very different skill sets and educational requirements. Both careers have different job outlooks, time commitments, and work environments. This article will explore the differences between accounting and nursing, and discuss which one is harder. It will evaluate the educational … Read more
Accounting for Raw Materials Raw materials accounting is an essential part of financial management. It is a critical component of the cost of goods sold (COGS) and inventory and is used to calculate cost of goods manufactured (COGM). This article aims to provide an overview of the accounting principles and practices related to raw materials. … Read more
Seed Funding Vs Angel Investor Vs Venture capital Financing a business is a critical decision for any entrepreneur. Seed funding, angel investor, and venture capital are three of the most popular options for financing a business. Each of these financing options has its own advantages and disadvantages, and it is important for entrepreneurs to understand … Read more
Accounts Receivable to Revenue Ratio Businesses use a variety of metrics to assess their financial health. One type of metric is known as a financial ratio. Financial ratios are used to compare different aspects of a company’s financials, such as its revenues, expenses, and profits. Ratios can also be used to compare a company’s financials … Read more