Cost Method Guide to Accounting for Investments, Examples

It usually involves the sale and purchase of long-term investments in debt and equity instruments of other entities. Examples of debt instruments (also known as debt securities) are government bonds, corporate bonds, mortgages, etc. The holder of such instruments is...

Reconciliation in Accounting: Meaning, Purposes, Types

Unrecorded items are different from timing differences as the company needs to record these differences in its bank book as well. Reconciling bank statements with cash book balances helps you, as a business, to know the underlying causes that lead to such differences....

Inventory Turnover Ratio Formula + Calculator

You can put them on sale, order more contemporary products and lower the inventory you carry so that you aren’t waiting on sales and have your cash flow hampered. Sometimes large, high-quality companies have less share turnover than smaller, lower-quality companies...