Overall, net working capital is often cited as one of the “purest” financial metrics for evaluating a company’s short-term financial well-being. A low ratio could mean that the company invests too much in inventory and account receivables, which may,... Read more
Inventory to working capital is a liquidity ratio that measures the amount of working capital that is tied up in inventory. There are many ways to acquire and calculate this, read our guide to find out more. Discover why you should monitor your finan... Read more
Marketing Systems LLC is a digital marketing agencies with offices in 5 countries within Europe. The business has over $7,000,000 in annual sales and it has more than 45 employees. A high ratio means that the company has an operational problem in liq... Read more
Generally speaking, it’s considered best practice to carry as little WIP Inventory as possible. Having too much WIP inventory on-hand can be an indication of bottlenecks in your manufacturing or procurement process.The term work-in-progress is a prod... Read more
You can take the three parts in any order and, if you pass part of the exam, you can carry over passing scores up to two years from the date you took the exam. Enrolled agents also had to learn about taxpayer advocacy. This additional skill involved... Read more
In order to work as an enrolled agent, candidates must receive the proper certification from the Internal Revenue Service. Generally speaking, interested candidates should have a background in public accounting. It’s also important to have tax prepar... Read more
Suspense accounts are routinely cleared out once the nature of the suspended amounts are resolved, and are subsequently shuffled to their correctly designated accounts. In reality, under a double-entry bookkeeping method, every kind of error is bound... Read more
Holding off on depositing receivables until you have all the facts in hand can result in inaccurate financial statements, especially if it takes a long time to reconcile and if the unidentified payment isn’t an isolated incident . Although it’s criti... Read more
The original budget assumed 17,000 Pickup Trucks would be sold at $15 each. To prepare the flexible budget, the units will change to 17,500 trucks, and the actual sales level and the selling price will remain the same. Given that the variance is unfa... Read more
The fourth entry requires Dividends to close to the Retained Earnings account. Remember from your past studies that dividends are not expenses, such as salaries paid to your employees or staff. Instead, declaring and paying dividends is a method util... Read more
