In other words, liquidity describes the degree to which an asset can be quickly bought or sold in the market at a price reflecting its intrinsic value. Cash is universally considered the most liquid asset because it can most quickly and easily be converted into other assets. Tangible assets, such as real estate, fine...
Prepaid assets represent the right to receive future services, while deferred revenue represents the right to receive future cash payments. The adjusting entry decreases the asset account and records an expense for the amount of benefits that have been used or have expired. The balance of $1,500 in the Prepaid Insurance account represents the...
Job order costing provides customizable cost control for low-volume complexity. Process costing simplifies assumptions for mass production scale and consistency. A grocery store’s analysis of a recent customer survey finds an increasing number of customers interested in being able to custom-order meals to go. Maria sees this as an opportunity to enter a niche...
The other expenses at Oil Change Co. (rent, heat, etc.) will not increase when an additional car is serviced. Below is a break down of subject weightings in the FMVA® financial analyst program. As you can see there is a heavy focus on financial modeling, finance, Excel, business valuation, budgeting/forecasting, PowerPoint presentations, accounting and...
Franchises are a great way for an entrepreneur with operating skills to maximize their financial success. Since every transaction flows through the general ledger, a problem with your general ledger throws off all your books. QuickBooks Online is great but to truly unlock the software’s full potential you have to maximize your integrations. Whether you are a restaurant using Square or...
This estimate is based on the sales and collections information from previous years and is reported by setting up a holding account called the allowance for doubtful accounts x. This accounting principle allows for the client’s balance to remain while reducing the accounts receivable on the balance sheet by creating a contra-asset account. The...
It can also integrate with other tools like Dext Prepare to help manage your expenses. While it is imperative to the financial health of your business, it can take away valuable resources from focusing petty cash on patient care. At Archer Lewis, we provide personalized accounting services, tax tips for dentists, and strategic guidance...
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