The current ratio formula is a simple and yet powerful business tool to help you assess a business's liquidity, i.e. its ability to pay current debts as they fall due. Online calculator included.
Category: Accounting Tutorials
The Gross Profit Ratio is probably one of the most commonly used financial and accounting metric. Along with the gross profit margin, it can help us understand not only how well a company is doing in...
Factoring is a contract where a company transfers or sells its accounts receivable balance (the debtors balance) to a factor, usually a specialised factoring provider. This factoring can be with or...
Our step-by-step guide provides you with a comprehensive overview of the accounting depreciation methods available. Complete journal entry examples included to help you along the way.
The first and the most important accounting lesson relates to the double entry system. It is vital to build the foundations and understand how the double entry systems works, what are the rules that...
While most of the goods or services sold are standardised, there might be cases where two companies enter into a construction contract. International Accounting Standard (IAS) 11 provides a framework...