Archive for the ‘ Money ’
How To Do Analysis Of Financial Statement
When analysis of financial statement is conducted, the analysts study the relationship between the items included in profit and loss account and in balance sheet
5 Basic Things You Must Know About Escrow Agreement
Escrow agreements are generally used to ensure that the parties involved in a business transaction are financially protected. This is done by the involvement of
How To Calculate Net Profit Ratio
Ratio analysis is a commonly used tool for performing financial analysis. A company can calculate different types of ratios to ascertain its profitability, long term
Two Great Reasons Why You Must Offer Paperless Billing To Your Customers
In this age of Internet, paperless billing can be very beneficial for both businesses and customers. Even very small businesses are now using Internet technologies
Pros And Cons Of Debt Financing
A company can use different sources of finance for meeting its business requirements. Different sources of finance may offer different advantages and disadvantages. A company
Gross Profit Versus Net Profit
A company’s objective is to earn revenue in order to meet its business expenses. In addition to meeting business expenses, a company is required to
3 Purposes Of A Cash Receipt
While making sales is one of the prime objectives of any business, it is important for a company to prepare and maintain appropriate documentation in
How To Calculate Accounts Receivable Turnover Ratio
Credit sales is used as a measure by companies to improve their sales revenue. Nowadays, people prefer to buy products or obtain services from companies
How To Calculate Accounts Payable Turnover Ratio
In order to ensure proper functioning of business processes, a company is required to purchase various items for carrying out production activities (such as raw
Meaning Of Opportunity Cost
In economics, opportunity cost refers to the next highest valued alternative available, which is not yet been chosen or which is been foregone. In other
How To Calculate Total Current Assets Of A Company
Assets represent one side of a company’s balance sheet. Balance sheet is an important financial statement which is prepared in conjunction with the profit and
Five Important Benefits Of Finance In Business
Every company is required to generate sales revenue to meet its business expenses. Company’s profitability position can be measured by deducting all business expenses from
How To Calculate Total Assets Of A Company
A company’s balance sheet is divided into two major heads: assets and liabilities. A company may have assets in different forms. Irrespective of the nature
How To Figure A Break-Even Point For A Business
Every company has a basic objective of profit maximization. In order to maximize profits, a company is required to increase sales on a continuous basis.
Definition Of Salary Payable And Its Effects
A company has to incur various business expenses. While some of these expenses are incurred on a regular basis, other expenses are incurred as and
