With better operating support, your organization will be in a much better position to achieve key goals. It’s worth raising this point rather than constantly running into cash flow problems by trying to do more with less. If you work with the homeless, for example, then it may be that your expenses increase in winter,…

The two specific types of adjustments are accrued revenues and accrued expenses. Entries are made with the matching principle to match revenue and expenses in the period in which they occur. Adjustments reflected in the journals are carried over to the account ledgers and accounting worksheet in the next accounting cycle. For the company’s December…

Now, the trial balance (the summary of chart of accounts examples all account balances) checking account balance reflects $125,453 at the end of May which is included in the financial statements. Current Assets – A business can quickly convert these assets to cash and include bank, cash and accounts receivable. The balance sheet accounts give…

Here we look at interest expense in the context of evaluating a company’s profitability, as well as its relevance for your personal finances. Our simplified model assumes the mandatory repayment of the original principal is 2.0% per year. Suppose a company decided to raise $20 million in capital through issuances of loan with a long-term…