The details in your statement of financial position will come in handy when it’s time to file your Form 990. Additionally, you can use this report to learn more about your nonprofit’s liquidity. For instance, by dividing your total current assets by your total liabilities, you can calculate your current liquidity ratio. The higher the ratio, […]
Bookkeeping
How to Calculate a Gross Profit Percentage: A Comprehensive Guide
Gross profit margin, on the other hand, is the profit a company makes expressed as a percentage using the formula above. Monitoring your gross margin is vital to ensure your business is generating enough revenue for sustainability. But the net profit margin is the most definitive measure of a company’s profitability. The Relationship Between Gross […]
Going Concern, Going Bust The New York Times
It’s considered extremely important under Generally Accepted Accounting Principles (GAAP) and is defined as one of the key assumptions of GAAP. This is one of the major concepts of accounting followed 100 printable invoice templates under Generally Accepted Auditing Standards (GAAS). A young enthusiastic learner who always wants to gain relevant experience and knowledge from […]
How to Calculate Effective Interest Rate in Excel with Formula
A lender separates out these additional fees in order to drive down the stated interest rate on a loan – a practice that is more likely to attract a borrower. The concept is also useful for comparing several alternative lending or borrowing arrangements that incorporate different interest rate calculations. Therefore, it can be clearly seen […]
Revenue Recognition Principles, Criteria for Recognizing Revenues
Misstated financials can create doubt about a company’s management and financial health. If discovered, this can lead to a sharp drop in share prices and potential lawsuits. Overstated earnings can result in excessive tax charges, while understated earnings could lead to penalties for underpayment of taxes. Financial analysts prefer that the revenue recognition policies for […]