Category Archives: Bookkeeping

The dividends paid by shares adjust proportionately following a stock split. In other words, you should receive the same amount of dividends after the split as you did before it. Publicly traded companies have a set amount of outstanding shares available in the market. In most cases, your brokerage will automatically adjust your trades to […]

A higher debt-equity ratio indicates a levered firm, which is quite preferable for a company that is stable with significant cash flow generation, but not preferable when a company is in decline. Conversely, a lower ratio indicates a firm less levered and closer to being fully equity financed. According to their financial statements, their total liabilities is […]

An international corporation with several divisions may need thousands of accounts, whereas a small local retailer may need as few as one hundred accounts. For ease of use, a COA contains the list of accounts’ names, brief descriptions, account type, account balance and account codes for each sub-account. On the other hand, organizing the chart with a higher level of […]

Examine each action to understand how it ties to the manufacturing process. Throughout the production process, you’ll need to calculate usage for activities. Full costing and variable costing are two different methods of accounting. They both have their own advantages and disadvantages, and they’re best suited for different types of businesses. Definition of Absorption Costing […]