Anyone who has ever considered starting a business, then taken that first logical step of going to the bookstore (online or in real life) to find a guide to getting started can relate to the overwhelm this creates. Bookstore “business” sections are packed with advice on every possible business topic, all screaming for attention with […]
What Is Reconciliation in Accounting?
What is reconciliation in accounting? To answer this question, one must first identify what type of account needs to be reconciled. You may have balance sheet accounts such as checking or savings accounts, petty cash or investment accounts. Certain types of companies or individuals may have transit accounts which need to be reconciled.The answer to […]
What is Marginal Cost and How to Find It
Determining the marginal cost is important for any business that is looking to maximize its profits. In a nutshell, it represents the decrease or increase in the total cost incurred by producing one or more unit of a product, or serving one or more customers. When shown on a graph, marginal cost has a U-shaped […]
What Is a Balance Sheet and How to Make One
Most business owners look at financial reports as something they have to complete for administrative reasons. They usually pass this task to their accountant without understanding its implication. So what is a balance sheet? The answer is not a report your accountant periodically provides for you to file. The balance sheet provides information on your […]
What Is a Good Debt to Equity Ratio?
“What is a good debt to equity ratio?” is a question often asked by investors. Debt to equity ratio is a financial measure that shows the relative proportion that exists between a company’s equity and its debt while operating to gain assets. Some equate an entity’s debt-to-equity ratio very directly with its financial leverage. Debt […]
What Are Retained Earnings? – Finance For Dummies
Many savvy investors investigate balance sheets to determine what are retained earnings. This is because the balance sheet tells a story of the entire history of the company. It reflects cumulative values since the inception of the company. Specifically, the retained earnings balance sheet account represents the cumulative net earnings since the company started. It […]
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