"A budget is telling your money where to go, instead of wondering where it went." - John MaxwellMeaningA budget report is a quantitative business plan prepared by management for the next quarter, year, or even several years. A budget report usually w... Read more
OverviewAccounting is a strictly documented recordkeeping of the financial activity of an entity. Accounting data is necessary to monitor and control the activities of the organization. Cost accounting is exactly what it sounds like or how a company... Read more
What are financial reports?For effective management and planning of the company's activities, as well as when attracting investments, all financial indicators must be properly structured and monitored regularly. This can be done using financial repor... Read more
At the end of each accounting period, a company will have to account for various liabilities that represent the lines of loss and expenses. They are various in nature, hence the neutral word ‘liability’ is used in these instances.The accrued payroll... Read more
FIFO & LIFO approaches can be hard to understand because even though they are clearly different, they don’t seem to make a lot of sense at first. Why distinct them, and what use are they? You’ll have to understand what they are before getting int... Read more
When evaluating any company’s financial condition, accounting for the Stockholders’ Equity, among other things, is a good way of understanding just how well the company is doing in the long run. It’ll help you understand if the company is well at the... Read more
When going through the company’s finances, one will often encounter the phrase ‘Operating Expenses’ alongside many other expenditure types that together amount to the company’s overall expenses. In turn, total losses subtracted from the income would... Read more
There are various ratios used by financial adepts to determine how well the company is doing in a particular field compared to some fundamental factor. The asset turnover ratio, for instance, estimates how effectively the company uses its assets.Whil... Read more
What is the liquidity ratio?The attractiveness of an enterprise for customers and creditors is traditionally assessed through the analysis of financial statements. Analysis of liquidity indicators is necessary both for the internal needs of enterpris... Read more
OverviewThere are numerous financial reports that a company can prepare. Each presents different financial information and serves a different purpose. Financial analysts, for instance, rely on financial reporting data to measure performance and predi... Read more
