The current ratio is a liquidity measure that identifies how many dollars of current assets are available to cover each dollar of current liabilities. Moreover, the term working capital ratio is also used for the current ratio, both have the same meaning. Companies with a current ratio higher than 2 (from 2.1 to 2.5) have […]
Category Archives: Bookkeeping
Over the equipment’s useful life, the business estimates that the equipment will produce 5,000 valuable items. Assuming there is no salvage value for the equipment, the business will report $4 ($20,000/5,000 items) of depreciation expense for each item produced. If 80 items were produced during the first month of the equipment’s use, the depreciation expense […]
The U.S. Department of Homeland Security (DHS) approves the CIP codes eligible for science, technology, engineering, and mathematics (STEM) designated degrees. The appropriation of revenues and expenses should be made in the relevant accounting period according to the work’s percentage completion. It also dictates which revenues and costs related to a construction contract https://www.bookstime.com/ should […]
