It’s these reports that you’ll be analysing to aid your decision-making process. As you can see, my bank account (an asset account) is debited £2.50, increasing its value. My income account (revenue account) is being credited £2.50, increasing its value, making the transaction balanced. T-Account vs Balance Sheet Interest earned by a bank is considered […]

If you are new to the study of debits and credits in accounting, this may seem puzzling. After all, you learned that debiting the Cash account in the general ledger increases its balance, yet your bank says it is crediting your checking account to increase its balance. Similarly, you learned that crediting the Cash account […]

Then, these journal entries are transferred into the general ledger, in the form of T accounts. The ledger is more summarized and brief, in comparison to the journal. Yes, similar to journal entries, T accounts should also always balance. Because T accounts are posted into the General Ledger of a business, they’re also commonly recognized […]

Examples of activity ratios are inventory turnover ratio, total assets turnover ratio, fixed assets turnover ratio, and accounts receivables turnover ratio. You will need to tally up all your assets of the company on the balance sheet as of that date. Noncurrent assets are long-term investments that the company does not expect to convert into […]

Yes, because your bank account balance shows you how much money you have available in your account. The money is there for you withdraw or leave in the account, possibly to earn interest payments on it. These two balance sheets are distinct, but the operating balance sheet is based on data from the accounting balance […]

By separating each value into parts, experts can improve the thought of ​​how the profit is utilized, reinvested in the business, or kept in real money. This oversight becomes more important when analyzing a company’s health. Financial data alone can tell us how much a company owns and owes. Still, it doesn’t explain how efficiently […]

This can lead to feelings of frustration and disengagement, which can ultimately harm productivity and quality. Technology has revolutionized supply chain management by providing real-time visibility into inventory levels, supplier performance, and product delivery. By optimizing supply chain operations, companies can minimize the risk of delays, defects, and other issues impacting the quality of their […]