The groups, who lend money need accounting information to analyses a company’s profitability, liquidity and financial position before making a loan to the company. Further, they keep constant watch on the operating results and financial position of the wave broadband push business through accounting data. Financial accounting is one of the broad categories in the […]

It is used to increase the profits of the company by saving money on labor costs. Since both the rate and efficiency variances are unfavorable, we would add them together to get the TOTAL labor variance. If we had one favorable and one unfavorable variance, we would subtract the numbers. The unfavorable labor rate variance […]

Though small businesses aren’t required to follow the same rules, doing so can help ensure a higher level of consistency. For a small business, accounting involves tracking money flow in various forms, including operating expenses (e.g., marketing, utilities, rent), cost of goods sold, accounts receivable and sales. It also takes into account liabilities, such as […]

For e.g., if a company is taking out a five-year, 4,000 USD loan from a bank. Its assets (specifically, a the cash account) will be increase by 4,000 USD. Its a liabilities (specifically, as the long-term debt account) will also be increase by 4,000 USD, balancing the two sides of the equation. Track your monthly […]