investing
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Allowance vs. Direct Method: Understanding Accounts Receivable Accounting
The allowance method and the direct method are accounting strategies for recording uncollectible accounts receivable. While the allowance method records a bad debt expense by estimation at the time of
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Calculating Cost of Capital from Annual Reports: A Practical Guide
It is important to not only look at a companys profit but understand its cost of capital, too. The cost of capital of a company is used for figuring out if it is earning a return at a rate ab
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Social Security Taxable Income Limits: How Much Can You Earn?
When you receive your Social Security benefits, you do not have to pay FICA taxes on the amount you receive, but you may have to include the benefits as part of your taxable income for the year when y
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Understanding Primary Beneficiary Percentages: A Comprehensive Guide
Beneficiary percentages set the guidelines for how funds should be distributed. Whether you're creating a will, conducting estate planning, buying life insurance or setting up retirement
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Financial Ratio Analysis: Benefits & Drawbacks for Firm Valuation
What Are the Advantages & Disadvantages of a Financial Ratio Analysis of a Firm? When valuating a company, different values are needed to get an accurate picture. Most of the values come
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Calculate Raw Material Turnover: A Step-by-Step Guide
Turnover ratios measure how efficiently a company uses its assets. For example, the raw materials turnover ratio gauges a company's ability to efficiently turn raw materials into finished products
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Impact of Unadjusted Prepaid Expenses on Financial Statements
Prepaid expenses are the result of advanced cash payments for expenses that a company will incur over multiple accounting periods in the future. Companies adjust prepaid expenses periodically to refle
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Calculate Pretax Rate of Return: A Comprehensive Guide
When comparing mutual funds, exchange-traded funds or any other type of investment, one of the most important measures to consider is its pretax rate of return. The pretax rate of return is the percen
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Calculating Profit Percentage Change: A Guide for Investors & Accountants
When researching potential investments, one financial metric to consider is the percentage change in the company's profits. A growing company should display an increase in profits, while a company
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Calculate Inventory Change: A Comprehensive Guide for Businesses
Inventory calculations vary, based on why theyre being done. Keeping track of inventory levels helps you know more than just what you've sold in a particular period. Inventory management
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Understanding Depreciation, Asset Disposal Losses & EBITDA
Depreciation and loss on disposal of assets are both expense items found on the income statement, while EBITDA (earnings before interest, taxes, depreciation and amortization) is a measure of income t
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Understanding Common Equity: Definition & Significance
A company's stockholders' equity on its balance sheet is the accounting value of all stockholders' interest in the company if the company were to pay off all of its debts. Common stock is
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IRA Contributions & Social Security: Eligibility & Rules
Numerous avenues of saving for retirement exist for Americans, including the individual retirement account (IRA). An IRA allows you to save money and accrue interest in a protected account throughout
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Life Insurance and Net Worth: What You Need to Know
Calculating your net worth lets you better understand your financial position. When you put together a financial plan, one of the first steps is to calculate your total net worth. This lets y
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Weighted Average Life of Bonds: Calculation & Significance
The weighted average life for a bond or another interest-bearing investment refers to the average amount of time for a dollar of principal to be repaid. Bonds with higher weighted average life values
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Texas Teacher Retirement System Loans: What You Need to Know
A teacher looking at paperwork on her desk in an empty classroom. Even the most complete financial plan can be upended by unpredictable emergencies or opportunities. At those times, when a tr
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Understanding the Limitations of Financial Accounting
Limitations about providing financial accounting are referred to as the constraints of accounting. The constraints of accounting refer to the limitations to providing financial information. F
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Calculating Additional Investment in Stockholders' Equity: A Comprehensive Guide
A company receives additional investment money by selling stock to investors. A company's stockholders' equity is the amount of investors' stake in the company. Stockholders'
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Net Income Attributable to Shareholders: Definition & Significance
Close-up of shareholders key on keyboard Financial statements provide a lot of valuable information for investors, including the net income and the cash flow of a company. Both metrics are us
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Traditional vs. Roth IRA: Understanding the Key Differences
Individual retirement accounts are classified in different ways for tax-recording purposes. Understand that the IRA is a tax-sheltered structure. It can hold funds already contributed into other retir
investing
- Mutual Fund Dividends: Frequency, Types & Tax Implications
- Understanding Market Shares: Common, Preferred & Mutual Fund Investments
- Signature Guarantee: Selling Securities & Preventing Fraud
- Understanding Interest: Simple vs. Compound on U.S. Government Bonds
- Passive Income Potential: Understanding Profits from Apartment Complexes
- Understanding the Link Between Negative Expected Return and Positive Beta
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Understanding Short Squeezes: A Guide for InvestorsShort squeeze is a term used to describe a phenomenon in financial marketsFinancial MarketsFinancial markets, from the name itself, are a type of marketplace that provides an avenue for the sale and p...
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Savings vs. Investing: Understanding the Key DifferencesSaving and investing both play an important part in building a brighter financial future. Both are good habits to create as you work to build wealth. But it is critical ...
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Understand Your Credit Score: A Quick 5-Minute Guidediv.cust...
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Navigating Global Markets: Avoiding Pitfalls in Cross-Border E-commerceThe prospect of expanding into cross-border ecommerce can undoubtedly be tempting for any business. Global ecommerce sales are forecasted to reach over $6.5 trillion USD by 2023 and technologic...