Working Capital: Definition & Formula

Content Working capital requirement calculation Working Capital Formula List of Working Capital Formulas Working Capital: The Quick Ratio and Current Ratio Positive vs. Negative Working Capital Cycle The overall liquidity of your business Current Assets Can Be Written Off Importance of working capital management Whether you’re struggling to grow your business or take advantage of […]

What Does Synergy Mean?

Synergy is a term that is most commonly used in the context of mergers and acquisitions (M&A). Synergy, or the potential financial benefit achieved through the combining of companies, is often a driving force behind a merger. Corporate synergy describes the expected additional value companies achieve by merging. In other words, two companies working together […]

Outsourcing Invoicing: Game Changer for Business Efficiency

Accurate invoicing is vital to ensure there are no delays in payment, as this is one of the most common reasons a client will pay late. Businesses invoicing in-house will often be pressed for time as they balance this alongside other responsibilities, and therefore mistakes in invoicing, such as wrong name, payment details and costs, […]

Memo debit definition

For example, a bank customer has a balance in his or her account for $3,000 and has made a request for additional printing of checks for which it was charged $40. A Debit Memorandum or simply called Debit Memo is a type of adjustment in a person’s bank account that typically represents transactions other than […]

In accounting for a contingent liability, if the likelihood of the obligation is probable, but the amount cannot be estimated, a company must: a Recognize the liability and report it on the balance sheet. b. Do nothing. c. Not recognize or disclose the

Content IAS 37 Provisions, Contingent Liabilities and Contingent Assets Issued Standards Adjusting a Provision Assessment of Pending Non-AoJ Cases (Handled by Contingent Liability Meaning Global sustainability standards Instead, Sierra Sports will include a note describing any details available about the lawsuit. When damages have been determined, or have been reasonably estimated, then journalizing would be […]

How To Collect, Report, and Pay State Sales Taxes

But the moment your dividend goes above $38,601, you start to pay the tax. Then, it's called an "unqualified dividend." You’ll pay taxes on unqualified dividends by using your personal tax rate, which you’ll find in your tax bracket. The tool's user-friendly interface and comprehensive features empower companies to estimate their corporate taxes. Businesses can […]

Reconciliation Accounting: Reconciling Accounts and Making the Most of Reconciliation

For example, an account reconciliation for inventory compares the GL account balance of the items believed to be held in inventory to an actual physical count of warehouse stock. When large discrepancies are discovered, the company may find that they're due to theft. On top of that, the software can help to automatically compare the […]