As Blur Guitar, Inc. buys inventory and makes sales throughout the year, it records all of the transactions as journal entries in the general journal. At the end of the year or the end of a reporting period, these transactions are taken from the general journal and posted to individual ledgers. Since there are so […]

Each installment includes repayment of part of the principal and an amount due for interest. The principal is repaid annually over the life of the loan rather than all on the maturity date. When dealing with short-term notes payable, it’s essential to understand how interest accrues and how to properly account for the repayment of […]

It is the annual coupon payments paid by the issuer relative to the bond’s face or par value. A coupon refers to the annual interest rate paid on a bond, paid from the issue date until maturity. The YTM calculation assumes that all coupon payments are reinvested at the same rate as the YTM. Because […]

It is the annual coupon payments paid by the issuer relative to the bond’s face or par value. A coupon refers to the annual interest rate paid on a bond, paid from the issue date until maturity. The YTM calculation assumes that all coupon payments are reinvested at the same rate as the YTM. Because […]

For instance, if the capital is used to acquire a profitable company or develop a new product line, the future earnings could increase, offsetting the initial dilution. 600 shares are issued as floating shares to the general public, 200 are issued as restricted shares to company insiders, and 200 are kept in the company’s treasury. […]

It’s a forward-looking cost, considering only the future expenses that will change as a result of the decision. On the other hand, opportunity cost represents the benefits a business misses out on when choosing one alternative over another. It’s the cost of the foregone alternative, the « road not taken, » so to speak. Differential cost, also […]

Stocks are also classified by market capitalization into large-, mid-, and small-cap categories. Large-cap stocks are more frequently traded and usually represent well-established, stable companies. In contrast, small-cap stocks often belong to newer, growth-oriented firms and tend to be more volatile. IPO (Initial Public Offering) stocks represent companies that have just gone public by offering […]

Reversing entries are the exact opposite of the original accrual entry, usually made on the first day of the new tax period. For example, when you pay a bill, your cash balance will change, but so will accounts payable. When it comes to exactly how you track and manage journal entries, there are a few […]

Start automating your ratio analysis today and transform raw financial statements into actionable investment insights. A higher debt-to-equity ratio signifies that a company has a greater proportion of its financing derived from debt as compared to equity. The term “ratio” in DE ratio refers to the comparison of two financial metrics and is expressed as […]

Use the mobile app to edit jobs, add tasks, track time on the move, and keep track of your budget wherever you are. The heavy civil construction industry may also need to handle certified payroll and prevailing wages. HCSS HeavyJob has strong project management capabilities for heavy civil companies. That said, most businesses may need […]