Understanding the Accrued Payroll

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

LIFO Reserve explained simply

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

Stockholders Equity Thoroughly Explained

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

Calculating the Asset Turnover Ratio

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

A Guide on How to Increase Liquidity Ratio

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

Statement of Comprehensive Income

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