Bookkeeping

Different accounting systems and ways of dealing with depreciation and inventories will also change the figures posted to a balance sheet. Because of this, managers have some ability to game the numbers to look more favorable. Pay attention to the balance sheet’s footnotes in order to determine which systems are being used in their accounting…

It’s best to utilize several ratios and financial metrics when analyzing a company. Net profit margin is typically used in financial analysis along with gross profit margin and operating profit margin. Investors typically want to know how much profit is being generated on a per-share basis because it shows how well a company has invested…

As you process more accounting transactions, you’ll become more familiar with this process. Take a look at this comprehensive chart of accounts that explains how other transactions affect debits and credits. The owner’s equity and shareholders’ equity accounts are the common interest in your business, represented by common stock, additional paid-in capital, and retained earnings….