Financial Leverage Explained with Example

DefinitionFinancial leverage is the ratio of a company's debt to equity. It characterizes the degree of risk and stability of the company. The less financial leverage, the more stable the position. On the other hand, borrowed capital allows you to in... Read more

A Comparison of Direct vs Indirect Cash Flow

OverviewThe main source of funds for the enterprise is the proceeds from the sale of products/services and profits. The absolute value of these indicators, as well as their dynamics for the reporting period, characterize the efficiency of the enterpr... Read more

What Does Public Accounting Mean?

OverviewAccounting is an all-encompassing term that can mean regular general ledger accounting, creating financial statements, performing audits, doing taxes, and much more. The two general categories of accounting are public and private.Public accou... Read more

Simple Explanation of Payroll Accounting Steps

PayrollSalaries are the main motivating factor in one's work. Besides the actual amount, a no less important factor is the correctness of its calculation and timely payment. For an employer, wages often fall under the main expenses that need to be co... Read more

Liability Accounts Explanation and Examples

What is the source of the assets a company owns? The organization cannot function without a constant flow of funds. The company takes money from various sources: loans, equity capital, profits, and so on. All of them must be recorded on the account.... Read more

Balance Sheet Template and Brief Explanation

OverviewThe Balance sheet is the type of reporting that almost all business entities are required to prepare. This document presents the most complete overview of all the processes that take place within the company.A Balance sheet is a document that... Read more