What Is a Subsidiary Ledger? Importance, Posting, & Example

First, it groups related accounts into one ledger that can be easily totaled and analyzed. It is much easier to review data when it is organized and grouped together. This record groups all of the vendors and trade debtors’ accounts together in one place rather than having them spread throughout the accounting system. How confident […]

What Is a Contra Account? The Motley Fool

When accounting for assets, the difference between the asset’s account balance and the contra account balance is referred to as the book value. There are two major methods of determining what should be booked into a contra account. You’ll continue to use the contra asset account until the equipment has been completely depreciated, retired, or […]

What Is Inventory Turnover Ratio?

A company with $1,000 of average inventory and sales of $10,000 effectively sold its 10 times over. Inventory turnover is the rate at which inventory stock what’s the difference between salary vs wage employees is sold, used, and replaced. The inventory turnover ratio is calculated by dividing the cost of goods by the average inventory for […]

How to calculate cost of goods available for sale

The cost of goods available for sale is divided by the total number of units available for sale, resulting in a weighted average unit cost. This method is particularly useful for businesses with large quantities of similar items in inventory, as it simplifies the accounting process. The weighted average cost method can mitigate the effects […]

2024 Minimum Wage Increases: Businesses Prepare for Change

At first, it appeared the bread exemption applied to Panera Bread restaurants. Bloomberg News reported the change would benefit Greg Flynn, a wealthy campaign donor to Newsom. But the Newsom administration said the wage increase law does apply to Panera Bread because the restaurant does not make dough on-site. Also, Flynn has announced he would […]

Debt Service Coverage Ratio Template Download Free Excel Template

DSCR considers both principal and interest payments, providing a more comprehensive view of a company’s financial health. In contrast, the Interest Coverage Ratio focuses solely on interest costs. A company’s net operating income is its revenue minus certain operating expenditures (COE), excluding taxes and interest payments. Lenders, stakeholders, and partners target DSCR metrics, and DSCR […]