Bookkeeping

Debt to Equity Ratio: A Complete Guide to Measuring Financial Stability

Debt ratio on its own doesn’t provide insights into a company’s operating income or its ability to service its debt. A balanced capital structure often indicates sound financial management and strategic thinking about the cost of capital. The broader economic landscape can serve as a lens through which a company’s debt ratio is viewed. A …

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Accounting for Bargain Purchases in Financial Statements

In the gross method, we normally record the purchase transaction at a gross amount. These retailers can usually receive a discount for paying in cash since the manufacturers and wholesalers don’t want to have outstanding accounts receivable. Lastly, the same as the perpetual inventory system, at the time of making payment (failing to get the …

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