Bookkeeping

Working Capital Ratio

Working Capital Ratio

Tally up all the debts, expenses, and other financial obligations expected for your business throughout the year or your operating cycle. The Net Working Capital Formula and the Working Capital Ratio Formula are the easiest ways to determine whether ...
Suspense Account

Suspense Account

Hold the partial payment in a suspense account until you contact the customer. When you find out the invoice, close the suspense account and move the amount to the correct account. Similar to business suspense accounts, brokerage suspense accounts te...
Royalty Disbursement Or Suspense Account Definition
Flexible Budgeting Nurtures Your Business  Get Started With 4 Best Practices
What Is Work In Process Inventory?

What Is Work In Process Inventory?

If you’re not an accountant, you may wonder how a work in process inventory journal entry looks. Here’s a simple example that shows how records shift from debits to credits throughout the production cycle. Absorption costing is a managerial accountin...