Period costs include all overheads related to the organization, sales, and distribution. As a result, profits get subtracted from the time in which they take place. […]

For example, a midsize manufacturing company needs to constantly track trends, unit costs and other information to succeed. A small service business, on the other hand, […]

For example, a midsize manufacturing company needs to constantly track trends, unit costs and other information to succeed. A small service business, on the other hand, […]

Treasury stock transactions and cancellations are recorded in retained earnings and paid-in-capital. Almost all businesses use the double-entry accounting system because, truthfully, single-entry is outdated at […]

This category is usually called “owner’s equity” for sole proprietorships and “stockholders’ equity” or “shareholders’ equity” for corporations. It shows what belongs to the business owners […]

They could change their prices, which could affect demand for your product, causing you to change your prices too. If they grow quickly and a raw […]

In other words, the debt-to-equity ratio shows how much debt, relative to stockholders’ equity, is used to finance the company’s assets. If a company has a […]

The number of shares issued refers to the number of shares issued by the corporation and can be owned by either external investors or by the […]

A high-profit margin means that a company is making a lot of money off of each sale and is therefore doing well financially. Businesses need to […]