Basics
Break-Even Point
One of the first steps in evaluating a business is determining your break-even point. This is the number…
August 16, 2021 · Boomi NathanBasics
Basics
Calculating Inventory Value
A company can raise or lower its earnings by changing the way it calculates the cost of goods…
August 16, 2021 · Boomi NathanBasics
Managing Inventory
Merchandise Inventory Merchandise inventories are the goods that are on hand for the production process or available for…
August 16, 2021 · Boomi NathanBasics
Managing Expenses
The Expense Authorization system is a commonly used method to keep track of and control expenses. It is…
August 16, 2021 · Boomi NathanBasics
Managing Sales
Sales made by businesses can be broken down into the following main categories: • Cash sales • Sales on account…
August 16, 2021 · Boomi NathanBasics
Petty Cash
The principal method for maintaining internal control of cash is using a checking account. However, a business usually…
August 16, 2021 · Boomi NathanBasics
Managing Cash
Bank Reconciliation Typically, a business will use a bank checking account to help control the flow of cash.…
August 16, 2021 · Boomi NathanBasics
What Is Shareholders’ Equity?
Shareholders’ equity represents the net assets owned by the owners (the shareholders). Net assets are assets minus liabilities.…
August 16, 2021 · Boomi NathanBasics
What Is a Liability?
A liability is an obligation to pay an asset in the future. It is also known as debt.…
August 16, 2021 · Boomi NathanBasics
What Is an Asset?
Assets are economic resources that provide future benefits to the business. Examples include cash, accounts receivable, prepaid expenses,…
August 16, 2021 · Boomi Nathan