In accounting, a General Ledger (GL) is a record of all past transactions of a company, organized by accounts. General Ledger (GL) accounts contain all debit and credit transactions affecting them. In addition, they include detailed information about each transaction, such as the date, description, amount, and may also include some descriptive …
In simple terms, it’s one that typically doesn’t change month-to-month. And, if you’re wondering what is a variable expense, it’s an expense that may be higher or lower from one month to the next. For instance, increasing output using the same amount of material can dramatically cut down costs, provided the quality of …
On the other hand, variable costs are considered volume-related as they change with the output. Management often uses fixed costs to base budgets and production schedules on. Since a business can’t get rid of its set costs, a certain amount of products need to be created and sold during each period to cover the expenses. […]
For example, if a company’s competitors have ratios of 2.25, 2.5, and 3, its ratio of 3.75 is high compared to its rivals. The formula for calculating the fixed asset turnover ratio divides net revenue by the average non-current assets, i.e. the average PP&E balance between the current and prior period. If a company sells […]
This time around, most companies will report first-quarter earnings that encompass the first three months of the year. The IRS requires businesses to file their taxes on the 15th day of the third month after the end of their fiscal year. So if a company’s fiscal year ends on June 30, the business must file […]
The income statement provides an overview of revenues, expenses, net income, and earnings per share during that time. You can also find detailed discussions of operations for the year, and a full analysis of the industry and marketplace. It’s important to note there’s a difference between cash flow and profit. While cash flow …