What are the Accounting entries? (Definition, Example, and Explanation)

Overview: Accounting entries, which are also more commonly known as simply journal entries, are one of the most important parts of an accountant carrier. The accounting or journal entries play a crucial role in the bookkeeping of every business, a small business or a huge business. Account entries are done by using the double entry …

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Accounting for Account Payable: Recognition, measurement, Journal Entries, and Example

Definition: Accounts payable are the payments that a business owes to its supplier as a result of purchasing a product or service from that supplier. Account payables are noted in the balance sheet of a company as liabilities because they are the obligations that are yet to be cleared. Account payables are normally classified as …

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What are Non-Financial Key Performance Indicators? (6 Important Indicators Included)

Non-financial Key Performance Indicators, which are also referred to as the intellectual capital of any company, are an increasing attribute for business drivers. It includes all knowledge, corporate reputation, relationship, information, data, skills, brands, patents, trust, or processes that are at the disposal of businesses. Non-financial KPI refers to other measures that are being used …

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How is Financial Break-even Calculated? (Formula, Example, and Calculation)

Breakeven concerns itself with an entity’s margin of safety. The term is used by accounting firms, investment institutes, and companies in general. Financial breakeven differs from accounting breakeven. While accounting breakeven concerns itself with the point at which a company is neither making profit or loss, that is a position where the company’s revenue and …

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What Causes Financial Distress? (Top 6 Reasons You Should Know)

The term “financial distress” is a common experience many individuals and organizations have gone through. When an individual is going through financial distress, the person cannot generate enough income to cover their expenditure. Financial distress occurs in an organization when the company cannot generate revenue that is sufficient to cater to all financial obligations. There …

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Walter’s Model on Dividend Policy: Explanation, Formular, Example, And More

Overview James E. Walter proposed a theory on the dividend policy of a company. It states that a company’s dividend policy depends on the internal rate of return [r] and the cost of capital (k). James Walter offered an interlink between the dividend decision and investment decision of a company. He stated that both decisions …

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