What Is a Statement of Shareholder Equity?
Remember that a company must present an income statement, balance sheet, statement of retained earnings, and statement of cash flows. However, it is also necessary to present additional information about changes in other equity accounts. This may be done by notes to... read moreHow to Accrue an Expense: 6 Steps with Pictures
Accrued expenses are liabilities that build up over time and are due to be paid. Accounts payable, on the other hand, are current liabilities that will be paid in the near future. In this article, we go into a bit more detail describing each type of balance sheet... read moreRetail Inventory Method: Guide & How To Calculate 2022
Along with sales and inventory for a period, the retail inventory method uses the cost-to-retail ratio. For time-crunched retailers, the retail inventory method is a quick and helpful way to get a handle on their merchandise value. There are several circumstances in... read moreWorking Capital: Formula, Components, and Limitations
For example, a company with a low current ratio or negative working capital may need to take measures to improve cash flow, such as reducing inventory or increasing sales. Working capital is essential for a company’s daily operations, such as purchasing... read moreUnits Of Activity Method Calculator
The activity depreciation method is a cost accounting technique that changes the cost behavior with the fluctuating output. This means that the costs are assigned to the activities based on their usage or consumption. The activity depreciation method is used to... read more