Cash Flow to Debt Ratio – Meaning, Importance, Calculation
Cash flow to debt ratio as the name suggests compares the total cash flow to total debt due by the company. It is one of the coverage ratios used …
Cash Reserves – Meaning, Importance And How To Calculate It
Cash Reserves is the amount or fund that a business or individual keeps aside for meeting emergency needs. Basically, it is a type of saving to meet unexpected or …
Types of Equipment Leases
Equipment leases usually provide an alternative way to the businesses that don’t have enough money to purchase necessary equipment. Businesses lease a variety of equipment ranging from airplanes to …
Direct Material
What is Direct Material Think about the list of items you need to prepare a chocolate cake. Your list will include items like flour, cocoa powder sugar, eggs milk, …
Weighted Average Shares Outstanding – Meaning, Calculation And More
Weighted Average Shares Outstanding incorporates any changes in the outstanding shares over a reporting period. This number is of great significance as it is useful for creating key financial …
Best Accounting Software – How To Choose
Doing all the accounting work manually in an organization is not possible. Even if accounting managers do so manually, it may have errors and be inconsistent. This will defeat …
Chart of Accounts Example
Chart of Accounts is an important part of the accounting system and serves as a base for preparing accounts. It basically tells which account to use for recording the …
Budgetary Slack
What is Budgetary Slack? Budgetary slack is the intentional overestimation of expenses & losses or underestimation of incomes & profits in the budget. The business contains a slack if …
Due Diligence Report-Meaning and Areas
If we try to define the term due diligence, it is an act of completely investigating and analyzing something before taking action. A due diligence report is a summary …
How to Calculate Contribution Margin?
Contribution margin helps in studying how revenue or sales affect profits or net income. It is expressed as a percentage, and we can calculate the contribution margin ratio by …
