by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What is a Common Size Financial Statement?A common size financial statement is a financial statement or balance sheet that presents itself as a percentage of the base number of sales or assets. The process of creating a common size financial statement is known as...
by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What is an Audit?An audit refers to the area that analyzes and evaluates the financial reports of a company so as to ensure that it keeps an accurate record of its transactions and business activities, and it gets reflected in the financial statements. Either the...
by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What is the Account Receivable Turnover?Turnover is a calculation of how fast a firm conducts its operations. It is generally used to determine how fast a firm sells off their inventory and take money from their account receivable. A company’s total revenue can...
by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What is an Unpaid Dividend?An unpaid dividend, also known as a Dividend Payable, refers to the dividend that a company has announced but has not been paid to stockholders. Dividends are profits that a company distributes to its shareholders. Corporations distribute...
by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What is a Working Ratio?The working ration is an accounting ratio that determines if a company can recover operating expenses from its yearly revenue. If the working ratio is low, it signifies that the firm is financially sustainable. A lower value represents a small...
by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What is Inventory Shrinkage?Shrinkage is described as a reduction or loss of inventory due to theft of inventory, spoilage, and other factors. The difference between the inventory that a company records on its balance sheet and the actual inventory available in the...
