Categoría: Bookkeeping

  • Equity Multiplier Formula with Calculator

    The DuPont analysis looks at the various components of a company’s return on equity — in other words, earnings divided by shareholders’ equity. If a company can generate a high ROE, it makes sense to reinvest in the business. That said, a company can always generate a higher ROE by loading up on debt, so…

  • How to Calculate Retained Earnings Formula and Examples

    The truth is, retained earnings numbers vary from business to business—there’s no one-size-fits-all number you can aim for. That said, a realistic goal is to get your ratio as close to 100 percent as you can, taking into account the averages within your industry. From there, you simply aim to improve retained earnings from period-to-period.…

  • Capital Dividend Account CDA: Definition and Tax Treatment

    This kind of compounding is why dividends accounted for 42% of the total return of the S&P 500 from 1930 to 2019, according to an analysis by Hartford Funds. Dividend yield lets you compare the value of dividends from different companies. Stock XYZ, for example, might pay a higher quarterly dividend than ABC of 20…

  • Temporary Account: 100% Great Guide with Definition, Examples

    The specific types of expenses accounts include cost of sales account, salaries expense account, buying account, and more. Using temporary accounts can help maintain accurate records of the economic activity during each accounting period. Businesses can create plans to maximize their cash flows by understanding the difference between permanent and temporary accounts. This is especially…

  • IAS 1 Presentation of Financial Statements

    A significant feature is that these can be easily liquidated to generate cash, which helps a business in managing any financial liquidity crunches. Despite the fact that they differ from one industry to another. Track assets and expenses in a free online table template. You can even switch to a calendar or card view to…

  • Net Realizable Value Formula

    Some of the content shared above may have been written with the assistance of generative AI. We ask the author(s) to review, fact-check, and correct any generated text. Authors submitting content on Magnimetrics retain their copyright over said content and are responsible for obtaining appropriate licenses how to post to the general ledger for using…

  • How W2 Employees Are Taxed Differently Than 1099 Contractors

    Each employee receives this important form around every January and it’s used to prepare each his or her taxes. W-2s also contain important information like employer/employee addresses, Social Security numbers and EIN (employer identification numbers). You’ll file a 1099 for workers who you paid at least $600 for services but didn’t withhold taxes under an employment…