What is the Difference between Gross Margin and Net Margin?
Gross margin is the difference between revenues and the cost of goods sold, which leaves a residual margin that is used to pay for selling…
Accounting
What is Coverage Ratios?
Coverage ratios are used to evaluate the ability of a business to meet its debt obligations. These ratios are most commonly used by lenders and…
What are the Examples of Assets?
An asset is something that is expected to yield a benefit in a future period. If an asset is expected to be entirely consumed within…
What is Return on Total Assets?
The return on total assets compares the earnings of a business to the total assets invested in it. The measure is intended to discern whether…
What is Operating Revenue?
Operating revenue is the sales associated with the normal daily operations of a business. For example, the meals sold by a restaurant would generate operating…
What is the Allowance for Doubtful Accounts?
The allowance for doubtful accounts is a reduction of the total amount of accounts receivable appearing on a company’s balance sheet. The allowance for doubtful…
What is an Accrued Receivable?
An accrued receivable is either a trade receivable or a non trade receivable for which a business has earned revenue, but for which it has…
What is Gross Accounts Receivable?
Gross accounts receivable is the amount of sales that a business has made on credit, and for which no payment has yet been received. The…
What is Virtual Close?
A virtual close involves the use of fully integrated company-wide accounting systems to produce financial statements at any time, on demand. This approach requires not…
How do you Collect Past Due Invoice?
A past due invoice is a billing that has not been paid as of its due date. If a business extends credit to its customers,…
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