Due to the drawbacks of the direct write-off approach, the allowance method is more frequently used. The Direct Write Off Method is straightforward and easy to understand, making it an attractive option for small businesses with limited resources. Shaun Conrad is a Certified Public Accountant and CPA exam expert with a passion for teaching. After [...]

It is very clear from the above example that the higher the compounding interval, higher is the wealth accumulated. Also, longer the investment tenure higher is the wealth accumulated. Furthermore, you can change the inputs and try various combinations to estimate the potential returns from your investment. Use Scripbox’s Compound Interest calculator to find how [...]

They tend to focus on their studies in short intense segments between jobs, classes, and family commitments. Meanwhile, the accounting industry has endured dramatic shifts since the collapse of Enron and WorldCom, causing a renewed focus on ethical behavior in accounting. This dynamic author team designed Managerial Accounting to work within the confines of today's [...]

Reconciling your accounts can help to identify and correct errors, ensuring all transactions end up correctly. The monthly bank reconciliation process should be free of errors and streamlined for maximum efficiency. It involves reviewing each individual transaction to see if the amount captured matches the actual amount spent. Documentation review tends to be more accurate [...]

The difference between the current ratio and the acid test ratio (or quick ratio) mainly involves the current assets inventory and prepaid expenses. The numerator of the acid-test ratio can be defined in various ways, but the primary consideration should be gaining a realistic view of the company's liquid assets. Cash and cash equivalents should [...]