Category: Bookkeeping

Current Ratio vs Quick Ratio: What’s the Difference?

Liquid assets are those that can quickly and easily be converted into cash in order to pay those bills. The quick ratio pulls all current liabilities from a company’s balance sheet as it does not attempt to distinguish between when payments may be due. The quick ratio assumes that all current liabilities have a near-term […]

Price Elasticity of Supply

Normal goods whose income elasticity of demand is between zero and one are typically referred to as necessity goods, which are products and services that consumers will buy regardless of changes in their income levels. Examples of necessity goods and services include tobacco products, haircuts, water, and electricity. Income elasticity of demand measures the responsiveness […]

Purchase of Equipment Journal Entry Plus Examples

A company usually must provide a balance sheet to a lender in order to secure a business loan. A company must also usually provide a balance sheet to private investors when attempting to secure private equity funding. In both cases, the external party wants to assess the financial health of a company, the creditworthiness of […]

General Ledger: Meaning, Classification, Examples

Furthermore, you can refer back to the details with regards to the sales made in case you need to do so in the future. Likewise, Sales Ledger also helps you to keep track of payments received and yet to be received from your customers. After you complete the worksheets, proceed with validation, sample report preview, […]

Cost of Goods Sold COGS Explained With Methods to Calculate It

Under absorption costing, fixed factory overhead costs are expensed only when the product is sold. Costs of revenue exist for ongoing contract services that can include raw materials, direct labor, shipping costs, and commissions paid to sales employees. These items cannot be claimed as COGS without a physically produced product to sell, however. Thus, there is […]