When are expenses and revenues counted in accrual accounting?

July 7, 2024 No Comments

A: Under the accrual basis of accounting, revenues and expenses are counted when they are earned. This is different from the cash basis of accounting, where they are reported whenever cash actually flows in and out of the business. Most accountants consider the accrual accounting

When are expenses and revenues counted in accrual accounting?

July 9, 2024 No Comments

When can you trade the stocks in the Dow Jones Industrial Average (DJIA)?

June 30, 2024 No Comments

A: The Dow Jones Industrial Average is an index that shows the average price of 30 large, publicly traded U.S. companies across many sectors. The index represents the performance of its constituents and is often used by investors and the media to portray an overall

When can you trade the stocks in the Dow Jones Industrial Average (DJIA)?

July 7, 2024 No Comments

When do you use installment sales method vs. the cost recovery method?

June 30, 2024 No Comments

A: There are four primary methods that accountants use to recognize business sales revenue: percentage of completion, completed contract, cost recovery and installment sales. In some circumstances, complications in a transaction make it uncertain as to how much revenue from a particular sale is collectible

When do you use installment sales method vs. the cost recovery method?

July 7, 2024 No Comments

When do you use installment sales method vs. the cost recovery method?

July 9, 2024 No Comments

When does Q4 start and finish?

July 9, 2024 No Comments

A: Most companies such as Facebook have financial years that end on December 31st. For these companies, the fourth quarter begins on October 1st. Other companies have financial years that end on odd dates; the financial year for Nike ends on May 31, for example.

When evaluating terminal value, should I use the perpetuity growth model or the exit approach?

June 30, 2024 No Comments

A: In discounted cash flow (DCF) analysis, neither the perpetuity growth model nor the exit multiple approach is likely to render a perfectly accurate estimate of terminal value. The choice of which method of calculating terminal value to use depends partly on whether an investor

When evaluating terminal value, should I use the perpetuity growth model or the exit approach?

July 7, 2024 No Comments

All Rights Reserved