Who actually declares a dividend?

July 9, 2024 No Comments

A: It is a company’s board of directors who actually declares a dividend. The declaration date is the first of four important dates in the process of a company paying a dividend. How a Company Handles Paying a Dividend Before a cash dividend is declared

Why are capital expenses (CAPEX) treated differently than current expenses?

June 30, 2024 No Comments

A: Current expenses are the necessary purchases that keep your business going from day to day such as rent, utility bills and office supplies. They are short-term purchases, or those used for less than one year, with no long-term effect on the profitability of a

Why are capital expenses (CAPEX) treated differently than current expenses?

July 7, 2024 No Comments

Why are capital expenses (CAPEX) treated differently than current expenses?

July 9, 2024 No Comments

Why are efficiency ratios important to investors?

June 30, 2024 No Comments

A: When analyzing a company’s potential for investment, it is important to examine its financial performance from every angle. While metrics that measure a company’s ability to turn profit are of paramount importance, the efficiency with which they do so also bears scrutiny. A company

Why are efficiency ratios important to investors?

July 7, 2024 No Comments

Why are efficiency ratios important to investors?

July 9, 2024 No Comments

Why can additional paid in capital never have a negative balance?

July 9, 2024 No Comments

A: The additional paid-in capital figure on a company’s balance sheet can never be negative because companies do not pay investors to take shares of stock off their hands. Equity Capital and Paid-In Capital When a business needs funds to finance growth, it can do

Why do accountants use debits and credits instead of simple pluses and minuses? Why is the notation for a debit “DR”?

June 30, 2024 No Comments

A: Debits and credits, and the technique of double-entry accounting, are credited (no pun intended) to a Franciscan monk by the name of Luca Pacioli. Known as the “Father of Accounting”, he warned that you should not go to sleep until your debits equaled your

Why do accountants use debits and credits instead of simple pluses and minuses? Why is the notation for a debit “DR”?

July 7, 2024 No Comments

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