Bookkeeping – Credit Sales and Cash Sales

Bookkeeping - Credit Sales and Cash Sales

Bookkeeping is the process of recording the financial transactions for a business. These transactions will ultimately provide the core information to construct the profit and loss account and balance sheet for a business. As part of this bookkeeping, the bookkeeper will need to record all the revenue and expenditure for the business, whether they are in cash or on credit. Read more

What Is Gross Profit?

What Is Gross Profit?

    By and large, businesses exist to make a profit, and determining just how profitable a business is is key to understanding just how well that business is doing. Some popular measures of profitability include gross profit and net profit. More than any other fact, investors want to know how much money a company is keeping after it has settled it obligations to suppliers, employees, and the government. Read more

Understanding Emotional Bank Account

Understanding Emotional Bank Account

In the last article I wrote here at Truly Rich Club, I mention regarding how to build relationships and other people skills. Now, understanding emotional investment is an integral part of making relationships that could aid in your quest for success.

Emotional bank account is divided into two: The emotional deposits and the withdrawals. Emotional deposits means understanding the person, being kind and forgiving, and being true to your word. Read more

Inventory Turnover and Debt-to-Total-Capital Ratio

Inventory Turnover and Debt-to-Total-Capital Ratio

In examining a company’s liquidity, one important item to look at is the inventory. Is it turning over relatively quickly, thereby generating a steady flow of cash? Or is it stagnant, and in danger of becoming obsolete? A convenient measure that is applicable to these questions is the inventory turnover.

Inventory turnover is calculated by dividing the average cost of goods on hand during the period, i.e., the average inventory into the total cost of goods sold during the period. Read more

How to Evaluate an Income Statement as an Effective Financial Tool

    The Main Characteristics of Income Statements Prepared According to GAAP Rules

     

    If youre in the process of evaluating your Income Statement and how it measures to the GAAP Rules for standards of reporting, be informed that there are four fundamental principles that every Income Statement should possess: relevance, reliability, consistency and comparability of financial information presented.

    Relevance The matter of relevance may refer not only to the usefulness of the information provided but also to the manner of organizing the data according to its most significant value, as a tool for making informed decisions. Read more

How Tax Filing Becomes Hassle Free For Companies?

How Tax Filing Becomes Hassle Free For Companies?

Taxes forms need to be filed by the companies within the deadline set by the internal revenue service. Failing to file the forms within the deadline leads to penalty worth many times than the actual amount. But, processing the forms according to taxation rule of US is not easy and requires lots of effort and money by the companies. Read more