Obsolete Inventory Percentage
Jennifer edwards The obsolete inventory is a percentage that is important for the firms and companies that have invested significantly in their inventory. This percentage helps the business to identify the percentage…
History of Accounting
The history of accounting relates back to the 14th century when Luca Picioli describes the concepts of debt, credit and bookkeeping for the very first time. No doubt people from…
Business in Liquidation
Business in liquidation is a business that is in the closing process or the owner is winding up his business due to loss or some other reason. While liquidating a…
Just In Time Inventory
Just In Time Inventory or JIT is an inventory management system in which inventory is updated or products are produced or manufactured only when the demand requires that. With the…
Total Quality Management
Total quality management can be defined as a management practices or set of efforts that are applied to the organization in order to improve the organization and increase its efficiency.…
What is Business Process Re engineering?
Business Process Reengineering is a process of making an organization more efficient and effective by redesigning the workflows in order to optimize end to end processes and to remove process…
Inventory Accuracy
In order to maintain systems that meet the customer demand, customer fulfillment and production a company needs to have hundred percent accurate inventory records. In order to have an idea…
Cash Coverage Ratio
Cash coverage ratio can be defined as the amount of cash available in hand in order to pay the interest expense of the business. This ratio shows the amount of…
How to prepare a Cash Flow Statement
The statement of cash flow is a financial statement that represents the flow of cash into and out of the company. It also shows the usage of the cash and…
Debt Service Coverage Ratio
The debt service coverage ratio is a ratio that is related to the revenue generating property. This is the measure of ability of the property to generate so many revenues…
Cost of Credit
The cost of credit is a financial calculation that is done to find out the cost of the discount that a business is going to offer on an early payment.…
Liquidity Index
The liquidity index is a financial indicator that is used to indicate the number of days required by a company to convert its trade receivables and inventory into cash. The…
Basic Accounting Principle
There are a number of basic accounting principle that contains norms and rules according to which accounting is conducted within a business. A few of these principles can be explained…
Writing Off a Bad Debt
Whenever a customer invoice is tagged as uncollectible this means that the amount receivable is not going to be received and is converted into a bad debt. If an invoice…
Time Value of Money
The concept of time value of money states that the cash received today at this point of time is more valuable as compared to the cash received in future at…
Variable Annuity
Variable Annuity is a kind of retirement annuity as it offers death benefits and other integrated features associated with death benefits. Most of the insurance companies offer variable annuities under…
Annuity Due
Annuity Due can be explained as a series of payments that posses certain characteristics as compared to the other form of the payments. The first characteristic of this kind of…
The Sales Tax Calculation Process
Sales tax is a kind of tax that is to be paid by the consumer and the seller receives it on the behalf of Government and has to pay all…