Bookkeeping

Cost of Capital

Cost of Capital

Sep 8, 2020 Bookkeeping by Adam Hill
Clearly, the opportunity costs of waiting time can be just as substantial as costs involving direct spending. Still, one could consider opportunity costs when deciding between two risk profiles. If investment A is risky but has an ROI of 25% while in...
Leverage dictionary definition

Leverage dictionary definition

Sep 8, 2020 Bookkeeping by Adam Hill
It's the borrowing of funds to finance the purchase of inventory, equipment, and other company assets. Business owners can use either debt or equity to finance or buy company assets. Using debt increases the company's risk of bankruptcy but can also ...
How to Determine the Unit Sold From Inventory
What are operating expenses?

What are operating expenses?

Sep 8, 2020 Bookkeeping by Adam Hill
Accountants sometimes remove non-operating expenses to examine the performance of the business, ignoring effects of financing and other irrelevant issues. In some cases, non-operating items are referred to as income from secondary activities, while t...
The operating cycle of a business

The operating cycle of a business

Sep 7, 2020 Bookkeeping by Adam Hill
These come together to form the complete measurement of operating cycle days. The operating cycle formula and operating cycle analysis stems logically from these. To be more specific, the payable turnover days are the period of time a company keeps t...