Finance | Senioritis

Adam Park
June 21, 2023
Finance

Calculate Gross Margin: Simple Steps to Measure Profitability and Evaluate Business Performance

how to calculate gross margin RevenuesCost of goods sold:Beg. inventory Var. Manuf. costsAllocated fixed manuf. costsCost of goods available for saleLess: Ending inventoryAdjustment for production-volume varianceCost of...

Adam Park
June 21, 2023
Finance

Calculating Operating Income: Step-by-Step Guide for Businesses

how to get operating income after calculating gross margin Gross margin operating costs:Var. operating costsfixed operating costsTotal operating costsOperating income Operating income can be calculated using the...

Adam Park
June 21, 2023
Finance

Maximizing Profitability: How to Calculate Operating Income Using Variable Costing

calculate operating income under variable costing Revenuesvariable cogsvariable marketing costs Contribution margin Fixed manufacturing costsFixed marketing costsOperating income To calculate operating income under variable costing, follow these...

Adam Park
June 21, 2023
Finance

Sole Proprietorship: Advantages and Disadvantages of Owning a Business Alone

A business owned by one person and is the simplest form of a business to start. The owner keeps all of the profits but has unlimited liability...

Adam Park
June 21, 2023
Finance

Partnering for Success: Advantages and Risks of Business Partnerships Explained

A business owned by two people. Partnership A business owned by two people is commonly called a partnership. In this type of business structure, each partner contributes...

Adam Park
June 21, 2023
Finance

Mastering Trial Balance: A Crucial Step in Ensuring Accurate Financial Statements

A columnar accounting form used to summarize the general ledger information needed to prepare financial statement Work sheet The columnar accounting form that is used to summarize...

Adam Park
June 21, 2023
Finance

Understanding General and Administration Expenses: A Detailed Supplementary Schedule

A company elects to present a supplementary schedule on the detail of general and administration expenses, the total of which is shown in the income statement. Full...

Adam Park
June 21, 2023
Finance

Proper Accounting Treatment for Intangible Asset: Depreciating Patent over its Useful Life According to GAAP

A company purchases a patent with a useful life of 10 years. The company depreciates the patent over 10 years rather than reporting the patent at its...