How do overdrafts work?Overdrafts are available for as long as the bank authorises them, and for as long as you pay the fees and charges that they incur. Current accounts now have a Monthly Maximum Charge (MMC) in place, which is the maximum amount y... Read more
Bank errors — AccountingToolsScammers could try to get such data from inexperienced people selling goods online. Moreover, if criminals can contact their victims, they could pretend to represent the bank. Therefore, it is crucial to know, people who... Read more
Why is a debit a positive?Understanding an Account BalanceCredits actually decrease Assets (the utility is now owed less money). If the credit is due to a bill payment, then the utility will add the money to its own cash account, which is a debit bec... Read more
How many types of account in bank?Customers may also check other details such as last five transaction details and Cheque status enquiry using the above mentioned numbers. A bank account is a financial account, which stores money on behalf of a custo... Read more
Is My Car An Asset Or A Liability?Definition of Balance Sheet AccountsYour balance sheets show the position of the company on a given day, including its total assets, liabilities and equity, which equals its net worth. Lenders commonly use financial... Read more
Bank ReconciliationThe difference between book and bank balances…If you're unclear about a business or personal bank transaction, contact your bank. If there is no undocumented reconciling item, print the bank reconciliation and store it. A check pay... Read more
Inventory to Sales Ratio– Many retail businesses have ups and downs in sales throughout the year. Analyzing sales during specific periods will help you readily identify these ebbs and flows. Once identified, calculate the inventory turnover ratios fo... Read more
Is Inventory an Expense? NO! Here is Why.Not only do service companies have no goods to sell, but purely service companies also do not have inventories. If COGS is not listed on the income statement, no deduction can be applied for those costs. One l... Read more
average payment periodThe accounts turnover ratio is calculated by dividing total net sales by the average accounts receivable balance. As a reminder, this ratio helps you look at the effectiveness of your credit, as your net credit sales value does... Read more
How Many Shares To Authorize?Recommended ArticlesTypically a startup company has 10,000,000 authorized shares of Common Stock, but as the company grows, it may increase the total number of shares as it issues shares to investors and employees. The nu... Read more
