The value of the stocks increases as the issuer begins to turn quarterly profits and sees returns on the investments generated by investors purchasing the stocks. For example, the face value of money is set by the federal government and printed directly on it, so it’s easy to identify. In the investment industry, face value […]
A contra account contains a normal balance that is the reverse of the normal balance for that class of account. The contra accounts noted in the preceding table are usually set up as reserve accounts against declines in the usual balance in the accounts with which they are paired. For example, a contra asset account […]
This means they might have to give the other investors a say in decisions about how to run the business. Depending on the company, different parties may be responsible for preparing the balance sheet. For small privately-held businesses, the balance sheet might be prepared by the owner or by a company bookkeeper. For mid-size private […]
The idea of a device like this is to amplify the force applied on one end to do significant work on the other end. By this definition, simple tools such as a hammer and wheelbarrow are types of levers. Similarly, an ax is a wedge while a corkscrew is a type of inclined plane. While […]
Having to reorder goods frequently also racks up transportation costs.By calculating EOQ, a business can determine when an order is to be placed and how much is to be ordered. This allows the company to make strides towards being as cost-efficient as possible while ensuring that production and sales continuity is guaranteed. Without it, ...
This means the same amount of amortization expense is recognized each year. On the other hand, there are several depreciation methods a company can choose from. These options differentiate the amount of depreciation expense a company may recognize in a given year, yielding different net income calculations based on the option chosen. ...