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Our writing and editorial staff are a team of experts holding advanced financial designations and have written for most major financial media publications. Our work has been directly cited by organizations including Entrepreneur, Business Insider, Investopedia, Forbes, CNBC, and many others. Our goal is to deliver the most understandable and comprehensive explanations of financial topics [...]

ContentGeneral Rules for Debits and CreditsWhich Accounts Have a Normal Debit Balance? Which Accounts Have a Normal Credit Balance?Contra AccountsNormal Balance of an AccountWhat are the Normal Balances of each type of account? Since Accounts Payable increases on the credit side, one would expect a normal balance on the credit side. However, the difference between [...]

Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The term “reasonable assurance” implies a risk that material monetary misstatements may remain undetected and precludes our guaranteeing the accuracy and completeness of the financial statements. An audit includes examining, on [...]

At the end of the month, the total expenses recorded in the "Advertising Expenses" account will be calculated by summing up the debit column. In this example, the "Advertising Expenses" account tracks the various advertising expenditures incurred by the company in May 2023. Each expense is recorded as a debit entry in the account, increasing [...]

By automating accounts receivable—with the right tools—you can circumvent this disconnect and deliver better experiences. Billtrust is an accounts receivable automation software that’s designed to help firms future-proof B2B transactions and billing systems. It offers unique solutions for businesses large and small and includes integrated payments and credit application features. Accounts receivable automation refers to [...]

The asset turnover ratio is expressed as a rational number that may be a whole number or may include a decimal. By dividing the number of days in the year by the asset turnover ratio, an investor can determine how many days it takes for the company to convert all of its assets into revenue. [...]

There’s no point competing with AI in the areas of raw data processing. Instead, focus on how you can use it to drive more is bookkeeping a dying profession value to your business and your clients’ businesses. Your ability to combine imagination and experience with financial data trends (and many other factors) still needs a [...]

The legal requirements are consistent with these national standards, but they are not identical. Specific legal reporting requirements are contained in reporting part https://accounting-services.net/income-smoothing-definition/ of this Manual. A common terminology and classification should be used consistently throughout the budget, the accounts, and the financial reports of each fund. By analyzing your nonprofit’s statement of activities, [...]

This is true for any active trader, but especially for low float stocks. Shares outstanding is a company’s entire collection of shares. Shares can also be restricted temporarily, like after an initial public offering. Unlike an int (whole number), a float have a decimal point, and so can a double. The range of these numbers [...]

ContentProfitability ratio #2: Operating profit marginMargin RatiosWhat Can Profitability Ratios Tell You?Return on equityOperating profit margin There are various ways to compute the profitability of a company, such as gross margin, operating margin, return on assets, return on equity, return on sales, and return on investment. Learn the definition of profitability ratio and analyze examples of profitability [...]