What is Profit Margin?
Profit margin is the percentage of sales that a business retains of course expenses has already been deducted. This margin is a explanation indicator of…
Accounting
What is Operating Margin?
Operating margin shows the percentage associated with profit generated through operating activities. This percentage is useful for determining the productivity on the basic underlying operations…
What is the Business Entity Concept?
The business entity concept states how the transactions of a business must become separately recorded via those of the owners or various other businesses. Doing…
What is Solvency?
Solvency is the ability of an organization to purchase its long-term obligations on the regular basis. If it can’t marshal the resources to take action,…
What is Profitability Index?
Profitability index steps the acceptability of the proposed capital purchase. It does so by comparing the initial investment to the current value of the longer…
What is Return on Assets?
Return on assets compares the total earnings of a business to its complete assets. It provides an estimate of the efficiency of administration in using…
What are Financial Ratios?
Monetary or Financial ratios compare different line items inside the financial statements for you to yield insights in to the condition and results of a…
What are the Usages of Expense Account?
The expense account concept has two different symbolism. One involves take a trip and entertainment bills, and the other is really a more general concept…
What is Journalizing?
Journalizing is the process of recording a business transaction in these accounting records. This activity only pertains to the double-entry bookkeeping method. The steps associated…
How do You Calculate Average Accounts Receivable?
The average accounts receivable figure is required in certain situations avoiding measurement problems. An enterprise typically includes it is ending accounts receivable balance in a…
Load More