Managing a Budget Videos

In order to calculate efficiency ratio, examine the cost of power being put out and divide that by the cost of putting power in. Find out how home appliances can have different efficiency ratios...

Calculating a debt to equity ratio means looking at total liabilities and dividing them by the amount of money that the owners have put in to see if there is enough money to do business. Examine...

Direct labor costs only include the labor that it took to make goods or perform services, and these costs do not include storage or accounting costs. Discover why manufacturers and contractors...

In order to calculate inventory turnover, take the total cost of the goods sold and divide that by the current value of the inventory in a store. Learn about how to calculate inventory turnover...

In order to calculate sales ratio, or sales receivable turnovers, take the accounts receivable and divide them by the total revenue. Discover how sales ratios can get muddied in contracting work...

The difference between an intrinsic value and a given value is that the intrinsic value is what a person can make back on a product at any time, despite what he may think the product is worth....

In order to calculate earnings per share, take all of the profits of a company after taxes and divide this by the total number of common shares. Find out why the money that goes into preferred...

When companies figure depreciation, they usually use accelerated depreciation and figure it into their taxes. Discover how a car can often represent accelerated depreciation with help from two...

Calculating total revenue is simple, as it is requires multiplying the total number of items sold by the cost of the items sold. Look at total revenue during price changes with help from two...

The compound growth rate of a company is usually associated with stocks, and it represents the average amount that a value increases each year. Use compound growth rate to compare stocks with help...

Operating cash flow is different than cash flow in that it doesn't involve things like taxes and insurance payments that can't be used in a business. Find out how operating cash flow is...

The break-even point is what a company needs to calculate in order to determine how much they need to sell to break even. Find out why companies have to cover overhead expenses with the money made...

Dividend payout ratio applies to businesses that pay dividend to their stockholders, and it is based on how much a company decides to pay out to these stockholders. Find out how a company's board...

Cost basis is calculated by eliminating any kind of commissions that would normally be included in what was sold or what was paid. Find out why commissions don't factor into cost basis...

For small manufacturers, marginal profit is important, because it represents the amount of profit that would result from selling additional units. Find out how to increase marginal profit by...

A sales margin is the percent of profit that is being made off of an item that is being sold. Find out how sales margins are calculated by taking the cost of an item, including all of the...

When calculating a capitalization rate, look at the rate of return of property that is well-produced on an owner's investment. Analyze which deals are the best for a company by calculating...

When a small business goes to a bank to qualify for a loan, the bank will look at several financial ratios, such as assets to liabilities and how much money is being asked compared to home much...

A default risk ratio is important for a small business because a bank will look at this to determine the level of risk associated with a possible loan. Learn about default risk ratios against zero...

Working capital refers to how much money a business has to spend after they 've paid all of their bills. Take current assets minus current liabilities to figure out working capital with help from...

In order to calculate market growth, compare the change of one period to the change of a subsequent period of time. Discover how market growth is the amount of the market that a product is...

In order to calculate gross profit, take the net sales and subtract the cost of sales. Find out how gross profit is essentially revenue minus the cost to produce that revenue help from two...

Return on equity is calculated by taking the net income and dividing it by the shareholder's equity, or the total amount of money the shareholder's have put into the company. Use return on equity...

External audits for accounting determine how accurate the system is for recording sales, expenses and payroll. Understand the process of auditing with information from a certified public...

Making a budget involves starting with this year's actuals and forecast to calculate an estimate for next year. Find ways to develop a company budget with information from a certified public...

When implementing a new accounting system, consider its ease of use, the processing time, the controls, the data validation and the integration possibilities. Develop an accounting system to keep...

Calculating percentage increase can be done by dividing the dollar amount of change that occurred by the base amount, which should result in a percentage of growth. Find out how much an amount has...

Creating an income statement is done by gathering the recorded journal entries that reflect the sales made and payroll paid, and by organizing the statement into sales, operating income, operating...

Preparing a company bank reconciliation is similar to preparing a personal checkbook reconciliation, which involves using the bank statements, the details of the cash account, the company...

When evaluating different accounting software, consider the ease of use, the processing time, the controls, the integration possibilities and the reporting capabilities. Find the right accounting...

Posting to ledgers is important for each accounting event, and the sub-ledgers should be linked to the general ledger. Find out how to properly post to ledgers with information from a certified...

Calculating dividend yield is done by dividing the dividends paid per share by the price per share to come up with a percentage. Compare this number to prior periods with information from a...

Calculating days payable can be done by dividing the accounts payable by the purchases for the period, or it can be done by dividing accounts payable by the cost of goods sold. Determine how well...

Deferred revenue is an issue when not all of the risks and rewards of a sale have been transferred to the customer, and this is common in the technology industry. Find out how to recognize...

A return on equity can be calculated by dividing the net income by the average shareholder's equity. Find out how to determine how well management is using funds from shareholders with information...

Generally accepted auditing standards are the recognized group of pronouncements that auditors of external financial statements must follow. Learn about general standards, standards of field work...

A financial analyst is someone who usually evaluates results between actual amounts and budgets, someone who builds budgets and someone who works on sophisticated models for reacting to various...

The accounting industry is very broad, and accountants can go into any industry, whether it's health care, technology or banking. Learn about public accounting and private industries with help...

One basic accounting principle is referred to as historical costs, which is the cost at which transactions are recorded. Learn about accrual accounting, in which cash is not relied upon to trigger...

In order to calculate operating income, start with sales and revenue, subtract the cost of goods sold and other major components, add in any other operating income and subtract operating expense,...

In order to calculate operating profit margin, take the operating income before taxes and divide it by sales. Find out why operating profit margin may not be meaningful without comparisons with...

Cash flow notes, or statements, are one of the financial statements required by GAP, and they show a user's resources, sources of cash and uses of cash. Learn about the three main categories of...

A financial account balance reflects the amount of transactions that are flowing through an account at any given time. Learn about underlying general ledger accounts that reflect transactions...

Profit and loss accounts and the transactions that affect them form the basis for income statements. Discover how to arrive at net income in profit and loss statements with help from a certified...

Accounts receivable is a list of all customer information, and depending on the ERP system, there will be available invoice-level detail provided by customer. Discover how to apply payments...

When preparing profit and loss statements, start with the revenue, the cost of goods sold, the cost of production and determine the gross margin. Find out how to arrive at a net income with help...

When preparing financial statements to apply for a loan, it's important to note that banks are typically looking for a list of assets. Make a list of liabilities, including mortgages and credit...

The International Accounting Standards board issues standards that are a single set of pronouncements used in more than 100 countries by publicly-listed companies. Discover why the U.S. is waiting...

A balance sheet is one of the major financial statements required by GAP, and the primary categories include assets, liabilities, the shareholder's equity and all related components. Learn about...

A consolidated income statement involves the financial statements that include the balance sheet, the income statement, the cash flow statement, the statement of the shareholder's equity and the...