ContentRetained Earnings vs. RevenueWhich items appear on both a statement of retained earnings and a balance sheet?Preparing A Statement Of Retained Earnings - A Business Case:How to Find Retained Earnings on the Balance Sheet?What’s the difference between retained earnings and revenue? Owners' equity or shareholders' equity is what's left after you subtract all the liabilities [...]

This is because small changes in sales can have a large impact on operating income. Degree of operating leverage, or DOL, is a ratio designed to measure a company’s sensitivity of EBIT to changes in revenue. In the table above, sales revenue increased by 10% ($62,500 to $68,750). However, it resulted in a 25% increase [...]

Unearned revenue is originally entered in the books as a debit to the cash account and a credit to the unearned revenue account. The owner then decides to record the accrued revenue earned on a monthly basis. The earned revenue is recognized with an adjusting journal entry called an accrual. Unearned revenue is recorded on [...]

Sales return is a refund granted to a customer after they return whatever products they purchased to the seller. This works for businesses under the return merchandise authorization, that is, businesses that support the return of goods due to conditions like dissatisfaction, delivery error, and more. These steps help accountants recognize revenue as either gross [...]

But MORE important is understanding WHY the business is making such a small profit in comparison to its flexible budget. This tool also promotes transparency in budgeting process, as managers re-evaluate the budget regularly, taking into account actual costs and identifying areas of overspending. Variance analysis is a financial and quantitative method used to identify [...]

China iPhone sales, which represent about 20% of the company's total iPhone sales, will be a big focus on the earnings call as competition from Huawei increases — but according to Ives, sales trends have been steady. Wedbush analyst Dan Ives said Apple will likely beat its first-quarter revenue and profit estimates on Thursday even [...]

Typically, accountants charge either an hourly rate or fixed fees. On average, an accountant costs $37 per hour, but this rate can fluctuate. Hourly rates are common for services such as how to hire a personal accountant consultation or advice. For ongoing tasks or specific projects, accountants may offer fixed fees, providing certainty and clarity [...]

Fraud detection systems in the past were designed based on a set of rules, which could be easily bypassed by modern fraudsters. Therefore, most companies today leverage machine learning to flag and combat fraudulent financial transactions. Machine learning works by scanning through large data sets to detect unique activities or anomalies and flags them for [...]

The account will be worth about $4,045.05 in 10 years. A few years of growth for these companies are illustrated in Table 3. Let us examine the graph of f f by plotting the ordered pairs exponential functions compound interest we observe on the table in Figure 1, and then make a few observations. The [...]

ContentWhat to look for in an income statementDetermine the Starting BalanceDo Companies Need to Report a Cash Flow Statement?How to Prepare a Cash Flow StatementCash Flow Statement Indirect MethodMotley Fool Investing PhilosophyCash Flow Analysis: The Basics As a business owner, those things are important to know when shaping your strategic plan. When cash flows into [...]