Bookkeeping - Page 69 of 146 - Online Accounting

Difference Between Realization and Recognition

Sep 30, 2020 Bookkeeping by Adam Hill

When most people refer to a company's profit, they are not referring to gross profit or operating profit, but rather net income, which is the remainder after expenses, or the net profit. It's possible for a company to generate revenue but have a net ...

Return on Investment

Sep 30, 2020 Bookkeeping by Adam Hill

This ratio indicates how well a company is performing by comparing the profit (net income) it's generating to the capital it's invested in assets. The calculation shows how effectively a company is producing its core products and services and how its...

Evaluating Retained Earnings: What Gets Kept Counts

Sep 30, 2020 Bookkeeping by Adam Hill

Retained Earnings (RE) are the portion of a business's profits. While it is arrived at through the income statement, the net profit is also used in both the balance sheet and the cash flow statement. that are not distributed as dividends to sharehold...

How Are Retained Earnings Recorded?

Sep 29, 2020 Bookkeeping by Adam Hill

These funds are retained and reinvested into the company, allowing it to grow, change directions or meet emergency costs. If these profits are spent wisely the shareholders benefit because the company -- and in turn its stock -- becomes more valuable...

The required rate of return

Sep 29, 2020 Bookkeeping by Adam Hill

The company might further modify RRR to include a stock’s “beta,” which is a measure of risk. Normally, a company would require a return rate on stock investments no less than its cost of capital. The investor could calculate present value discounted...