by waleedmlk | Feb 7, 2024 | Bookkeeping
Net sales is a more accurate representation of the cash a company brings in from customers. Gross sales revenue is a good measure of how well a company is doing, but it doesn’t reflect key aspects like the company’s profit margin. Net sales revenue helps show how much...
by waleedmlk | Jan 11, 2024 | Bookkeeping
Direct costs are the amount of money directly related to the manufacturing process of products, like raw materials and labor wages. To report your company’s net sales on the income statement, you should include it...
by waleedmlk | Dec 8, 2023 | Bookkeeping
The final amount of received payments may not reflect the invoices sent to customers. Any money coming in from outside of core business operations (selling products and services) is considered nonoperating income and is included in revenue but not sales. Gross sales...
by waleedmlk | Aug 21, 2023 | Bookkeeping
If a company takes out a five-year, $4,000 loan from a bank, its assets (specifically, the cash account) will increase by $4,000. Its liabilities (specifically, the long-term debt account) will also increase by $4,000, balancing the two sides of the equation. If the...
by waleedmlk | Jul 24, 2023 | Bookkeeping
An activity cost driver can affect the costs of labor, maintenance, and other variable costs in ABC. ABC is a subfield of managerial accounting concerned with allocating an activity’s indirect costs, also known as overheads. This step allows companies to use that...
by waleedmlk | Oct 14, 2022 | Bookkeeping
The book value per share of a company is the total value of the company’s net assets divided by the number of shares that are outstanding. If a company has a book value per share that’s higher than its market value per share, it’s an undervalued stock. Undervalued...
