It is one of many ratios that help investors and analysts evaluate the financial health of a company. The higher the ratio, the better, as it indicates how many times a company could pay off its debt with its earnings. The calculation reveals that Option A offers a real rate of return of 2%, while […]
Category Archives: Bookkeeping
The terms mean, median, mode, and range describe properties of statistical distributions. In statistics, a distribution is the set of all possible values for terms that represent defined events. The value of a term, when expressed as a variable, is called a random variable. Mean, median, and mode are measures of central tendency used to […]
I feel confident knowing that she is handling my account. I am grateful to have found Aenten for my bookkeeping and tax needs. 80% of our customers agree that aenten save their up to 50% of money on taxes when done with aenten. Here are a few typical services you can expect a dedicated accounting […]
These tools offer a clear and concise way to track their finances without getting bogged down in complex spreadsheets. Debits and credits can be tricky initially, but they’re the foundation of understanding how businesses track their finances. Remember that with every transaction and journal entry there will be two unearned revenue accounts that are affected. […]
While the payback period shows us how long it takes for the return on investment, it does not show what the return on investment is. Referring to our example, cash flows continue beyond period 3, but they are not relevant in accordance with the decision rule in the payback method. It is an important calculation […]
Property tax in California is regulated by the State Board of Equalization and administered at the county level. Proposition 13, enacted in 1978, limits annual increases in assessed value to 2%, unless the property undergoes a change in ownership or new construction. Businesses can deduct ordinary and necessary expenses, such as wages, rent, utilities, and […]
The accounting equation tells us that ASI has assets of $10,000 and the source of those assets were the stockholders. Alternatively, the accounting equation tells us that the corporation has assets of $10,000 and the only claim to the assets is from the stockholders (owners). Although revenues cause owner’s equity to increase, the revenue transaction […]
After five years, the company has repaid $250,000, so there is $250,000 of the loan remaining. Let’s say a company, XYZ Corp., took out a loan of $500,000 five years ago, which it agreed when is the best time to incorporate your business to repay over ten years in equal annual installments. Each year, the […]