Current Ratio Explained: a Vital Liquidity Metric
Similarly, a too low current ratio would mean the company has not maintained sufficient current assets to meet its obligations. The current ratio can be used to assess a company’s current asset utilization and cash flow management. For instance, a seasonal company may have a low current ratio the off-season, but a higher-than-average current ratio […]
Current Ratio Explained: a Vital Liquidity Metric
Similarly, a too low current ratio would mean the company has not maintained sufficient current assets to meet its obligations. The current ratio can be used to assess a company’s current asset utilization and cash flow management. For instance, a seasonal company may have a low current ratio the off-season, but a higher-than-average current ratio […]
What Is Average Collection Period Ratio Formula and How to Calculate It
The average collection period is calculated by dividing the net credit sales by the average accounts receivable, which gives the Accounts receivable turnover ratio. To determine the average collection period, divide 365 days by the accounts receivable turnover ratio. Average collection period refers to the amount of time it takes for a business to receive […]
How to hire a bookkeeper and tips
Then, kickstart your bookkeeping career by signing up for an Intuit Bookkeeping Certification. These exams test your knowledge of analyzing business transactions, payroll taxes, financial statements, and more. Once you’ve learned how to become a bookkeeper and have two years of work experience, you can become a certified bookkeeper. Becoming a certified bookkeeper requires passing […]
Differential Cost Learn How to Calculate Differential Cost
Differential costs, sometimes called incremental, are the overall costs incurred while choosing between several options. ABC Company is a telecom operator that primarily relies on newspaper ads and the company website for marketing. However, a recently hired marketing director suggests that the company should focus on television ads and social media marketing to reach a […]