News

Analysis of Financial Statements At the end of each period it is advisable to make an analysis of your financial statements. Compare your beginning Balance Sheet to your ending Balance Sheet utilizing the keys that we discussed earlier. Also, compare the Balance Sheet Ratios that are important to you. Compare your period Income Statement to [&helli...

Solvency Ratios Debt Ratio – Calculates the portion of Total Assets relative to Total Liabilities. In our example Total Liabilities $144,780 / Total Assets $384,540 = 37.65% Equity Ratio – Calculates the portion of Total Assets relative to Total Equity. In our example Total Equity $230,760 / Total Assets $384,540 = 62.35% Debt-to-Equity Ratio &...

Liquidity Ratios Current Ratio – The Current Ratio in the Balance Sheet example shown earlier is the mathematical relationship of Current Assets to Current Liabilities: (Current Assets $117,040 / Current Liabilities $57,480 = $2.04) For every $1 of Current Liabilities there is $2.04 in Current Assets. This indicates a good liquid position and now...

The Accounting Cycle Record Journal Entries Post Cash or Credit Transactions Review Unadjusted Trial Balance Post Adjusting Entries Review Adjusted Trial Balance Review Financial Statements Record Closing Entries

Types of Accounting Transactions Cash – Payments received or paid (Cash Sales Orders or Checks written for products or services) . Accounts Receivable – Credit Sales of products or services (Customer invoices). Accounts Payable – Credit Purchases of Assets (Vendor invoices). Notes Payable – Short Term or Long Term. General Journal Entries â...

Impact of Accounting Transactions When you are ready to record a transaction you will need to determine which accounts are increased or decreased as well as the amounts that apply to each. The benefit to recording transactions is the resulting update to each individual account allowing the company to review its financial position at any […]

I have revised the PowerPoint for the Practical Accounting / QuickBooks Start-up Class. New Slide – Accrual Accounting & Historical Costs As the GAAP Rules suggests; Accrual Accounting & Historical Costs must be used to maintain consistency in transaction recording. Accrual Accounting is a matching of revenues and expenses covered o...

I see that individuals from all over the world have visited my Bud’s Books website. The countries represented in the visits this month are as follows: United States, Brazil, Italy, UK, Russia, India, Argentina, Romania, Saudi Arabia, Thailand, South Korea, and United Arab Emirates. I would like to hear from each country on my contact [&hellip...

50 Great Writers You Should Be Reading This is the 3rd year that RG Bud Phelps has won the Authors Show Award – “50 Great Authors You Should Be Reading” In 2012 RG Bud Phelps was one of the 50 for his book “Gibbon’s Secrets” – A Boy’s Memories of the 40’s In 2013 RG […]

RG Bud Phelps Historical Fiction book Back in the Day  Results in Him being Chosen As One of ’50 Great Writers You Should be Reading’ Phelps was chosen as the result of a public voting process.  His historical fiction book, entitled “Back in the Day,” is the second book in his ‘life series’ which started [&hell...