Sales returns and allowances account for one of the most important categories you’ll find on an income statement. They’re integral in tracking the quality of your product, consumers’ satisfaction with your business, and the profitability of your sales efforts. Return on equity (ROE) is similar to ROI in that it measures ...
An hourly employee who worked 37 hours one week and 45 hours the next would receive different amounts for those two weeks. An implicit cost is money that a company or firm spends on resources that it already has in place. Salaries and wages paid to employees are considered to be implicit because business owners […]
The common stock account would be recorded as $50,000 on the balance sheet, representing the total par value of the outstanding common stock. Let’s consider a hypothetical example to illustrate the concept of a common stock account on a company’s balance sheet. Investing in preferred stock from a shaky company is as risky as buying ...
Other consequences of a bounced check include businesses refusing to accept your checks, a reduction of your credit score, and possibly even legal trouble. Their bank will then attempt to collect the amount of the check from your bank. Only, you don’t have enough money in your checking account to cover the check you’ve written. ...
In forex trading, a restricted market is one that does not allow for a freely floating exchange rate for a specific currency. Most currencies trade worldwide and fluctuate in relative value based on supply, demand, and other market factors. However, some money has oppressive government control with exchange rates that do not reflect economic ...
The main benefits of a sole proprietorship are the pass-through tax advantage, the ease of creation, and the low fees for creation and maintenance. Yes, being a sole proprietor is the same as being self-employed. A sole proprietor does not work for any company or boss, so they are self-employed. However, as the business grows, […]