In short, it is an organizational tool that lists by category and line item all of the financial transactions that a company conducted during a specific accounting period. To better understand the balance sheet and income statement, you need to first understand the components that make up a chart of accounts. Knowing how to keep […]

Also called marginal analysis, the relevant cost approach, or differential analysis, incremental analysis disregards any sunk cost (past cost). The basic method of allocation of https://www.saveplanet.su/articles_11_page9.html in economics is to assign a primary user and the additional or incremental user of the total cost. In summary, incremental cost isn’t a mere line item on a […]

By contrast, the going concern assumption is the opposite of assuming liquidation, which is defined as the process when a company’s operations are forced to a halt and its assets are sold to willing buyers for cash. Even if the company’s future is questionable and its status as a going concern appears to be in […]

I can tell you that in the 500+ churches that The Unstuck Group has served, these churches invest about 50% of their overall budget on staff compensation and benefits. Our consulting team generally encourages churches to try to stay in the range of 45 to 55 percent of total budget. Payscale lists the overall Christian worker salary as $43,000, but […]

This is essential information for management teams, shareholders, investors, lenders and financial journalists. Auditors also use these statements to ensure the organisation is complying with legislation and regulations. If the parent company does not buy 100% of shares of the subsidiary company, there is a proportion of the consolidated meaning in accounting net assets owned […]

Available for sale securities are securities that are available for sale (literally!) and have a readily available market price. At the end of each financial year, companies need to value the available for sale securities. Any gains/losses due to the change in valuation are not included in the Income Statement but are reflected in the […]

The same thing goes with fixed expenses; dirty price they must be included in fixed costs if they are fixed. The “contribution margin” is the difference between total sales and variable costs. Variable costs can include production expenses, such as materials, supplies and overhead, as well as variable selling and administrative expenses, such as sales […]