Finance | Senioritis

Adam Park
June 21, 2023
Finance

How to Calculate Operating Income: Formula and Examples.

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 achieved by subtracting...

Adam Park
June 21, 2023
Finance

Valuation of Assets Acquired through Note Payable: A Guide to Fair Value and Present Value Calculation.

If an asset is acquired by issuing a note payable with a realistic stated interest rate, the asset’s initial valuation equals the amount of the note plus...

Adam Park
June 21, 2023
Finance

Understanding Depreciation: The Indirect Impact on a Company’s Cash Balance

If Depreciation is a non-cash expense, why does it affect the cash balance? Although it is a non cash expense, Depreciation is tax deductible which means it...

Adam Park
June 21, 2023
Finance

How to Estimate Return on Equity with Total Revenue: A Guide for Social Science Researchers

If equity is $2 million and total revenue is $1.3 million, then ROE is __________. incalculable without net profit data The formula for calculating Return on Equity...

Adam Park
June 21, 2023
Finance

Understanding How Expected Inflation Impacts Interest Rates and Investments

If expected inflation increases, interest rates are likely to increase Which of the following statements is CORRECT?-If expected inflation increases, interest rates are likely to increase-If individuals...

Adam Park
June 21, 2023
Finance

How to Allocate Purchase Price for Land, Building, and Equipment – Importance of Fair Value in Accurate Recording of Transactions and Proper Accounting Treatment

If land, building, and equipment are acquired in a lump-sum purchase, the purchase price is allocated first based on the fair value of the building and then...

Adam Park
June 21, 2023
Finance

Book Value Valuation Method for Non-Monetary Exchanges: An Overview for Accurate Financial Reporting

If the fair values of the assets in a nonmonetary exchange cannot be determined, the asset received is valued at the book value of the asset given....

Adam Park
June 21, 2023
Finance

Why Taking Physical Inventory is Essential for Record Keeping, Accounting, Taxation, Fraud Prevention and Customer Service in Businesses

If using a periodic system, companies take a physical inventory for the following reasons: 1. Determine inventory for Balance Sheet2. Determine Cost of Goods Sold Companies take...