For example, a company with a ratio of four, not inherently a “high” number, will appear to be performing considerably better if the average ratio for its industry is two. You can also talk in the end a little but about how and where this formula is used in ratio analysis. From the above explanation, […]
Markup percentage is most useful when applied to products with discrete marginal costs because the calculations are fixed and determinable. (It can apply to services, too.) The more a business’s cost structure depends on direct allocation and high marginal costs, the more markup percentage reveals. Margin is the percentage of the final …
In this case, we recognize the entire book value of the asset as a loss of $15,000. We faced problems while connecting to the server or receiving data from the server. In business, equipment is often exchanged (e.g., an old copy machine for a new one). Exchanges can be motivated by tax rules because neither […]
Loan is shown as liability in the balance sheet of the company. Obtaining a loan from a bank or other financial institution is a common way for companies to access the financial resources they need to fund their operations and support their growth. There are many different reasons why a company might need to borrow […]
The interest rate on a loan can vary depending on factors such as the creditworthiness of the borrower, the term of the loan, and the market interest rates. An unsecured loan is money that you borrow without using collateral. Common examples of unsecured loans include credit cards and personal loans. Loan is shown as liability […]
In simple words, such assets have a short life span, which can be easily converted into cash during an accounting period. Fixed or long-term assets are convertible to cash but not as quickly as current assets. Tangible assets are the opposite of intangible assets which do not take a physical form and have a theorized […]