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Accounting / July 16, 2018 / Justice Buckley

Probability distribution. When calculating the expected present value of an ARO, and there are only two possible outcomes, assign a 50 percent probability to each one until you have additional...

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Accounting / July 16, 2018 / Collins Barber

This costing system is used in target costing, product costing, product line profitability analysis, customer profitability analysis, and service pricing. It is also hugely popular since organizations can develop a...

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Accounting / July 31, 2018 / Ariyah Lang

Reconciliation is particularly useful for explaining the difference between two financial records or account balances. Some differences may be acceptable due to the timing of payments and deposits. Unexplained or...

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Accounting / August 3, 2018 / Khloe Santiago

A cash flow analysis is not the same as the business budget or profit and loss projection which are based on the Income Statement. However, for a small uncomplicated business...

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Accounting / August 3, 2018 / Sharon Hardin

If your small business has several loans with various payments, you might want to consider debt consolidation. It is a process that lets you combine multiple loans into a single...

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Accounting / August 3, 2018 / Holly Mercer

Accounts payable turnover ratio (also known as creditors turnover ratio or creditors’ velocity) is computed by dividing the net credit purchases by average accounts payable. It measures the number of...

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Accounting / August 3, 2018 / Ariyah Lang

Lenders and investors want to see that your business is well-balanced with assets and liabilities, has positive cash flow, and will have capital to make expected repayments....

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Accounting / August 3, 2018 / Willow Mccoy

Activity-based costing (ABC) is mostly used in the manufacturing industry since it enhances the reliability of cost data, hence producing nearly true costs and better classifying the costs incurred by...

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Accounting / August 3, 2018 / Pearl Bailey

Bankers use different cash flow measures for different purposes. Free cash flow is a common measure used typically for DCF valuation. However, free cash flow has no definitive definition and...

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Accounting / August 3, 2018 / Collins Barber

Comprehensive Income The concept of comprehensive income, which is relatively new (1998), takes into consideration the effect of such items as foreign currency translations adjustments, minimum pension liability adjustments and...

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