They suggest that companies integrate impairment testing into their regular financial planning and analysis processes to ensure asset valuations remain accurate and up-to-date. Impairment triggers are events or circumstances that suggest an asset’s value has declined. These can include adverse changes in the business environment, economic downturns, or physical damage [...]

It’s essential to understand how credit card payments work if you want to manage your money. While credit cards provide you with flexibility, their payment processes can be complex. This guide outlines the key stages from making a purchase to paying off your balance, helping you minimise fees and interest. [...]

In accounting, the margin of safety is a handy financial ratio that’s based on your break-even point. It shows you the size of your safety zone between sales, breaking-even and falling into making a loss. This can help prepare for unexpected market changes, such as economic downturns, that would impact [...]

However, tech companies that specialize in creating software don’t have an asset that is stored somewhere, and they don’t require expensive industrial equipment to produce their product. They may generate sales with that software, but there isn’t a warehouse full of software code that investors can look at to bookkeeping [...]

A current ratio of less than 1.00 may seem alarming, but a single ratio doesn’t always offer a complete picture of a company’s finances. The platform helps businesses automate key financial workflows, sync real-time data to accounting software, and provide visibility into urgent to-do’s. A low ratio might be a [...]

The earning of revenues also causes stockholders’ equity to increase. If the left side of the accounting equation (total assets) increases or decreases, the right side (liabilities and equity) also changes in the same direction to balance the equation. The accounting equation asserts that the value of all assets in [...]

This business has not enabled messaging on Yelp, but you can still contact other businesses like them. QuickBooks and other bookkeeping software give you a tool to do your own bookkeeping. Get free guides, articles, tools and calculators to help you navigate the financial side of your business with ease. [...]

Return on Equity (ROE) speaks to how effectively your company generates profit from its shareholders’ investment. A higher ROE is a good sign for investors, as it demonstrates a strong ability to generate a return on their investment. The equity value is the fair market value (FMV) of a company’s [...]

For example, they can use it as a part of the managerial accounting process. However, companies following the IFRS cannot use LIFO for financial reporting. LIFO is an applicable inventory valuation method under GAAP, which applies in the US. However, the IFRS prohibits companies from using this method when evaluating [...]

Learn financial statement modeling, DCF, M&A, LBO, Comps and Excel shortcuts. Along with the shareholders’ equity section, the liabilities section is one of the two main “funding” sources of companies. Liabilities don’t have to be a scary thing, they’re just a normal part of doing business. Because chances are pretty [...]