Accounting

The GAAP hierarchy defines the level of authority of different accounting pronouncements. When researching an accounting issue, the individual should first look for relevant advice…

The asset turnover ratio is an efficiency ratio that measures a company’s ability to generate sales from its assets by comparing net sales with average…

The investment turnover ratio compares the revenues produced by a business to its debt and equity. The ratio is used to evaluate the ability of…

The calculation of payroll is a highly regimented process. This calculation should be followed meticulously, to ensure that there are no mistakes in the amount…

The iron curtain method is a technique for determining whether a financial misstatement is material. Under this method, the cumulative effect of a misstatement in…

The acid test ratio compares the most short-term assets to short-term liabilities. The intent of this ratio is to evaluate whether a business has sufficient…

The difference between fixed and variable costs is that fixed costs do not change with activity volumes, while variable costs are closely linked to activity…

Expense accounting involves the proper recognition and recordation of a consumed expenditure or an incurred obligation. This process is critical to recognizing expenses in the…

Accounts payable ratios are designed to measure the operational efficiency of a payables department, as well as its ability to pay suppliers in a timely…

To become an accountant, there are a number of training, certification, and experience hurdles to address. In addition, there are several types of accounting tracks…