Moreover, the formula considers the earnings across the project’s entire lifetime, rather than only considering the net inflows only before the investment cost is recovered (like in the payback period). This indicates that the project is expected to generate an average annual return of 20% on the initial investment. The accounting rate of return can …
Category: Bookkeeping
Feb 13 2023
Retail Accounting Basics: Understanding the Retail Inventory Method
One of the key challenges of running a retail business is tracking inventory, especially if you buy multiple inventory units that don’t all cost the same amount. If this is the case, you need to figure out a way to assume the cost of goods sold so that you can compare this to your ending …
Oct 31 2022
An accounting firm for Nonprofit Organizations
While the basic bookkeeping principles may apply in both cases, certain seemingly small details make significant differences in how a nonprofit’s finances are done. Bank reconciliation is the process of ensuring an organization’s records (balance sheet, general ledger irvine bookkeeping account, cash flow, etc.) are accurate. A nonprofit reconciles bank accounts by comparing the recorded …
Jul 14 2020
Adjusting Entries: A Simple Introduction Bench Accounting
Other methods that non-cash expenses can be adjusted through include amortization, depletion, stock-based compensation, etc. If the revenues earned are a main activity of the business, they are considered to be operating revenues. If the revenues come from a secondary activity, they are considered to be nonoperating revenues. For example, interest earned by a manufacturer …
- 1
- 2
