The Debtor Days Ratio shows how quickly a company turn the credit sales made into cash. It’s therefore reasonable that the smaller the debtor days ratio, the quicker a company is able to collect...

To take a break from writing our Accounting 101 series, we thought we would look back on our site and see how things have changed over the last seven or eight years. In particular, we wanted to look...

In our personal finance articles, for example our article on watching those expenses, we often talk about Dave Ramsey and the very positive impact he has had on our family's personal finances. If you...

Liabilities are financial arrangements (normally called debt or loans) that create an obligation on a business to expend economic benefits to a third party. The accounting for liabilities is through...

Following our articles looking at business analysis, we turn to the net profit ratio (NPR). In business, we also often refer to this ratio as the Net Profit Marin. Rather than looking at return on...

The ability for owners to draw on capital built up in a business is important for capital growth. We provide a full example with journal entries and explanations.