Wholesale companies typically deal with higher volumes of inventory than retail businesses. They might monitor their inventory-to-sales ratio to align with fluctuating supply chain dynamics and bulk purchasing patterns, which might differ from the more direct sales patterns in retail.…
The company has use of the vehicle for the entire prior month, and is, therefore, able to use the vehicle to conduct business and generate revenue. Another variation uses earnings before interest after taxes (EBIAT) instead of EBIT in interest…
When using the cost principle, an asset’s value is easy to determine. This means that the historical cost principle must be used to maintain compliance in accounting in Canada. In addition to this, there are some benefits to using the…
When using the cost principle, an asset’s value is easy to determine. This means that the historical cost principle must be used to maintain compliance in accounting in Canada. In addition to this, there are some benefits to using the…
The legislation increased the available Private Activity Bonds (PABs) authority from $15 to $30 billion. PABs, allocated by the Secretary of Transportation, incentivize private sector investment in U.S. transportation infrastructure. Across over 40 projects, the Department of Transportation has approved…
These earnings are typically also used for growth, but they’re not earmarked for a specific transaction or project. Appropriated earnings are earnings that aren’t available for distribution among shareholders. Earnings are appropriated to communicate to shareholders that the management expects…
As you learned previously, direct materials are the components that can be directly traced to the products produced, whereas direct labor is the labor cost that can be directly traced to the products produced. In order to calculate accurately, we will…
ConsAccountancy practitioners routinely make adjustments to financial records. This includes integrating data from a prior period as those data become available (accounting for subsequent events or adjusting for under/over applied overhead are examples). The ability for a double-entry accounting system…
These entities often seek bookkeepers who understand the unique challenges of subscription-based revenue models and rapid scalability. Bookkeeping for tech startups, especially those in SaaS, involves tracking customer acquisition costs, analyzing churn rates, and managing complex revenue recognition rules. Specialization…
I started my career in consulting before a detour into an entrepreneurial venture inspired me to choose a different path. As the head of finance at four startups, I developed a deep passion for company-building but was frustrated by the…