News: Bookkeeping

The perpetual system, on the other hand, provides detailed and real-time inventory management but at a higher cost and complexity. The choice between the two systems should be based on a business’s specific operational needs, resources, and long-term growth...

Typically, common stock is issued and traded far in excess of the par value, but bonds and preferred stock are issued at or near their par value. When a corporation is formed, the articles of incorporation must set a par value for its common stock, which all...

The Average Collection Period represents the number of days that a company needs to collect cash payments from customers that paid on credit. For the formulas above, average accounts receivable is calculated by taking the average of the beginning and ending balances...

U.S.-based companies are required to report under generally accepted accounting principles (GAAP). International Financial Reporting Standards (IFRS) are relied on by firms outside of the U.S. Below are some of the key distinctions between the two standards, which...

Some examples of investing cash flows are payments for the purchase of land, buildings, equipment, and other investment assets and cash receipts from the sale of land, buildings, equipment, and other investment assets. Cash flows from investing activities are cash...