A balance transfer works as a debt payoff strategy, allowing you a period of time to pay down debt without paying interest on what you owe. For example, if you have a $5,000 debt on a card with a 19.99 percent APR, you would pay about $691 in interest to pay off that debt in […]
Category Archives: Bookkeeping
Asset, liability, and most owner/stockholder equity accounts are referred to as permanent accounts (or real accounts). Permanent accounts are not closed at the end of the accounting year; their balances are automatically carried forward to the next accounting year. A contra account is an optional accounting tool you can use d to improve the accuracy […]
All the amounts in a set of financial statements have to be presented in good faith. Any reported balance that fails this essential criterion is not allowed to remain. Furthermore, even if there was no overt attempt to deceive, restatement is still required if officials should have known that a reported figure was materially wrong. […]
This post is published to spread the love of GAAP and provided for informational purposes only. In addition, we take no responsibility for updating old posts, but may do so from time to time. This example illustrates the successful application of the Recognition Principle for Gain Contingency. It ensures that revenue is recognised at the […]
The Contribution Margin is the revenue from a product minus direct variable costs, which results in the incremental profit earned on each unit of product sold. The product revenue and number of products sold can be divided to determine the selling price per unit, which is $50.00 per product. In 2022, the product generated $1 […]
In order to improve the book value per share of your company, put away a portion of your profits into either acquiring more assets or into squaring away liabilities quickly. This ought to bring the book value per share up, while keeping the number of shares outstanding at the same number for the said period. […]
At a contribution margin ratio of 80%, approximately $0.80 of each sales dollar generated by the sale of a Blue Jay Model is available to cover fixed expenses and contribute to profit. The contribution margin ratio for the birdbath implies that, for every $1 generated by the sale of a Blue Jay Model, they have […]
However, investors use it to determine if a stock price is overvalued or undervalued based on the market value per share of the company. Stocks are deemed cheap if their BVPS is greater than their current market value per share (the price at which they are currently trading). The book value per share (BVPS) is […]
The Contribution Margin is the revenue from a product minus direct variable costs, which results in the incremental profit earned on each unit of product sold. The product revenue and number of products sold can be divided to determine the selling price per unit, which is $50.00 per product. In 2022, the product generated $1 […]
At a contribution margin ratio of 80%, approximately $0.80 of each sales dollar generated by the sale of a Blue Jay Model is available to cover fixed expenses and contribute to profit. The contribution margin ratio for the birdbath implies that, for every $1 generated by the sale of a Blue Jay Model, they have […]