Corporate bonds generally offer higher yields than government bonds because they usually come with a higher probability of default, making them riskier. Additionally, there are different types of corporate bonds that range in levels of risk and yield. Estimating future cash flows in bond valuation can be subjective, as it requires assumptions about interest rates, […]
Category Archives: Bookkeeping
But if the company does not produce any hats, it will not incur any variable costs for the production of the hats. Similarly, if it produces 1,000 hats, the variable cost would rise to $5,000. Operating leverage measures the degree to which a business can increase operating income by increasing revenue. A business that generates sales […]
See the time value of money calculator for more information about this topic. The break-even point (BEP) helps businesses with pricing decisions, sales forecasting, cost management, and growth strategies. A business would not use break-even to measure its repayment of debt or how long that repayment will take to complete. How do you calculate a […]
Depreciation is calculated and deducted from most of these assets, which represents the economic cost of the asset over its useful life. Harvard Business School Online’s Business Insights Blog provides the career insights you need to achieve your goals and gain confidence in your business skills. Below is a sample balance sheet to give you […]
During inflation, the FIFO method assumes a business’s least expensive products sell first. As prices increase, the business’s net income may increase as well. This process may result in a lower cost of goods sold compared to the LIFO method. Would you prefer to work with a financial professional remotely or in-person? The latest goods, […]
Often, values on a company’s financial statements are based on historical cost accounting and may not reflect the true current market values. Thus, it is very important to be certain the correct values are used in the calculation, so the ratio does not become distorted. At the very least, a company with a high amount […]
You will owe taxes on any amount of money that is earned in this manner, potentially even if it’s just $1. All earned interest needs to be reported on your tax returns as income. A very simple example of interest income that happens every use the new charitable contribution break with your standard deduction day […]
When calculating sales tax, remember to add the calculated tax amount to the sales price to determine the total amount due from the customer. The GST (Goods and Services Tax) is an indirect sales tax levied on various goods and services throughout the supply chain. The taxes levied in many countries that set either “GST” […]
While this certification isn’t required, it can help increase forensic accountants’ job prospects and pay and gives them credibility when testifying in court. A forensic accountant may be asked to quantify the economic damages arising from a vehicle accident or a case of medical malpractice or other claims. Forensic accountants analyze financial records and accounts […]
The more experience you obtain, and the further you advance your accounting education, the higher-paid positions you’ll be eligible to fill. Most financial accounting enthusiasts do you have to be good at math to be an accountant may wonder if their average or below math knowledge may stop them from studying in the field. Financial […]
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