It reflects the efficiency of a company in its production and selling process. Financial statements aid in making decisions about investing in a company, lending money to a company, or providing other forms of financing. This article is not intended to provide tax, legal, or investment advice, what are state income taxes and BooksTime does [...]

In this case, it is helping users of FS to understand all types of liabilities and expenses that probably happen to the entity. This approach makes allowance for doubtful accounts and bad debt expenses it easier for them to understand and compare financial statements. If you record revenue, the conservatism approach in accounting is common. [...]

JIT is a pull-based system of production, pulling work through thesystem in response to customer demand. This means that goods are onlyproduced when they are needed, eliminating large stocks of materials andfinished goods. Therefore, for every labor hour spent, a cost of $6.7 or for every machine hour spent a cost of $10 would be [...]

Identifying a break-even point helps provide a dynamic view of the relationships between sales, costs, and profits. Finally, the breakeven point can be used to determine the amount of losses that could be sustained if a business suffers a sales downturn. This is a useful analysis when deciding how much to pare back expenses during [...]

However, Lehman's balance sheet contained relatively low-risk assets such as regulatory deposits and closely matched trades, making up about half of its total assets. "Net leverage," which did not include these assets, was the company's main focus. For example, according to Lehman Brothers' most recent annual financial reports, the company had accounting leverage of 31.4 [...]