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I’m a big fan of the note-writing and sharing app, Evernote. As a professor, a University administrator, a husband, and a father, I am constantly receiving tasks and little pieces of information that I’m expected to keep track of and complete, sooner or later.  Evernote allows me to keep a collection of to-do lists for […]
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Current assets are assets deemed to be liquid enough to be converted to cash within one year or less. The balance sheet reports current assets above noncurrent assets. Types Current assets include: Cash and cash equivalents Short-term investments Accounts receivable Merchandise inventory Prepaid assets Understanding liquidity Liquidity is defined as how easily an asset can be […]
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Noncurrent assets are assets that are not deemed to be liquid enough to be converted to cash within one year or less. They are listed in the balance sheet below current assets. Types of noncurrent assets Property, plant, and equipment Long-term investments Goodwill Copyrights, trademarks, and other intangible assets Noncurrent assets and operating cycles Noncurrent assets […]
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Got too much work to handle? Take it one piece at a time, applying the four D’s: Delete, Do it, Delegate, or Defer. In today’s workplace we constantly face a barrage of tasks. How do you prioritize them and get things done? Simple. Apply the four D’s! Whether you’re dealing with e-mail, snail mail, meetings, or tasks […]
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Companies’ balance sheets report cash and cash equivalents. In this article, I explain what this means. Defining cash Cash is the standard medium of exchange, the basis for measuring and accounting for everything. It may consist of coins, currency, and funds available on deposit in a bank. It may also include petty cash balances on hand and […]
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Inventory turnover measures how productively a company uses its merchandise inventory to generate sales and profits. Calculating inventory turnover Here is the formula for inventory turnover: Inventory turnover = Cost of goods sold⁄Average inventory Cost of goods sold measures the amount paid to purchase or manufacture items that were sold during the period. To find cost […]
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Inventory, also called merchandise inventory, is the company’s investment in products that it plans to sell to customers. It is an asset recorded on the balance sheet along with other current assets. Manufacturers make their own inventory, while retailers and other businesses buy their inventory from suppliers. Recording inventory Under U.S. Generally Accepted Accounting Principles, companies usually […]
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I’ve posted an updated version of the Accountinator spreadsheet. If you already use the existing spreadsheet and get inappropriate “oops” cells, then you may wish to update to this new version. You can copy and paste your existing data into the new version, or copy the “oops” cells in column “A” from the new version […]
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