Retained Earnings Formula + Calculator

A thorough accounting system and a well-maintained general ledger helps assess your company’s financial health accurately. There are many more formulas that you can use, but these eight covered in this article are undoubtedly key for a profitable business. Since...

Current asset Wikipedia

Cash and equivalents (that may be converted) may be used to pay a company’s short-term debt. Accounts receivable consist of the expected payments from customers to be collected within one year. Inventory includes raw materials and finished goods that can be sold...

What Are Drawings in Accounting?

It is a current asset of the company and is one of the many assets that can be withdrawn from the business by the owner(s) for their personal use. The drawing account represents a reduction of the business’ assets, as the assets in question are withdrawn and...

A Small Business Guide to Inventory Management

Such classification would decide the manner in which the raw materials would be accounted for in the books of accounts. In this article, we will discuss what are raw materials, types of raw materials, and how to calculate raw materials inventory. The asset turnover...

Par Value vs Market Value: What’s the Difference?

Companies set a par value for their common stock because they are often legally required to do so. In the case of common stock, it just represents a legally binding contract that the stock will not be sold below a certain price, like $0.1 per share or $0.01 per share,...