The total equity amount reflects the company’s net worth or book value, which is the value of the assets minus the liabilities. Within each category, there are specific accounts that represent different types of transact ...
Read MoreSome charts of accounts use four digits instead of three, but the first digit remains the same. You can use four-digit codes—assets (1000 to 1999) and liability accounts (2000 to 2999). When recording transactions in the ...
Read MoreAnalyzing the leverage ratios, debt levels, and overall risk of the company gives creditors a good understanding of the risk involving in loaning a company money. What happens if you consider each section and still fin ...
Read MoreIf that is not clear, then the expenses should be reported in the period in which they are used up. If there is uncertainty as to when an expense is matched or is used up, the amount spent should be reported as an expe ...
Read MoreA higher dividend yield may indicate a more attractive investment opportunity for income-focused investors, while a lower yield might be more appealing to those seeking capital growth. EPS represents the portion of profi ...
Read MoreA higher EPS generally indicates a higher value and profits relative to share price. While EPS is a widely used and essential tool, it has several limitations and can be easily misinterpreted. When evaluating a company, ...
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