What is the opposite of amortize?
Accretion can be thought of as the antonym of amortization: see here also, Accreting swap vs Amortising swap. In a corporate finance context, accretion is...
Category: General
Why does the perpetual system use inventory shrinkage?
The difference between the two is recorded as a debit to inventory shrinkage expense and a credit to merchandise inventory. The perpetual system, therefor...
How do you calculate operating margin?
To calculate the operating margin, divide operating income (earnings) by sales (revenues). What is the operating margin ratio? The operating profit margin...
Why is variable costing not used for external reporting?
The reason that the variable costing can’t be used for the external financial reports is because the GAAP has a rule that the manufacturing overhead has t...
What does the term structure of interest rates indicate?
The term structure of interest rates reflects the expectations of market participants about future changes in interest rates and their assessment of monet...
How to do a SOAP journal?
SOAP is an acronym to help you remember: First, we read a passage of scripture. Then, we pick out a particular verse – or group of verses – that was espec...
Can you leave profit in an S Corp?
Just like regular corporations, S corps can distribute profits to their shareholders, keep them as retained earnings or do a little of both. An S corp doe...
What is accounting profit and tax profit?
The difference between Accounting Profit and Taxable Profit is that Accounting profit refers to the earnings calculated based on the accounting standards ...
Can an asset have zero value?
Fully depreciated assets that continue to be used are reported at cost in the Property, Plant and Equipment section of the balance sheet. As a result, the...
What causes common stock decrease?
If a company does well, or the value of its assets increases, common stock can go up in value. On the other hand, if a company is doing poorly, a common s...
