Break-Even Analysis: Definition and How to Calculate and Use It

The break-even point for sales is 83.33 or 84 units, which need to be sold before the company covers their fixed costs. From that point on, or 85 units and beyond, the company will have paid for their fixed costs and record a profit per unit. As you can see, when Hicks sells \(225\) Blue […]

Evaluating Your Personal Financial Statement

And, you agree to your vendors’ payment terms so you know when to pay them. You can try to adjust either of these types of payment terms to improve cash flow. Let’s say we’re creating a cash flow statement for Greg’s Popsicle Stand for July 2019. If we only looked at our net income, we […]

Days inventory outstanding definition

With NetSuite, you go live in a predictable timeframe — smart, stepped implementations begin with sales and span the entire customer lifecycle, so there’s continuity from sales to services to support. For example, a drought situation in a particular soft water region may mean that authorities will be forced to supply water from another area where […]

Inventory Reserve: Definition, Purpose, and Use in Accounting

Since we are now discussing returns and allowances, can you figure out what account we will use? Most of the time in accounting, the account names describe what is going on. So let’s look at the entry for the same transaction under periodic inventory. Inventory refers to assets owned by a business to be […]

No, Your Amazon Account Wasn’t ‘Hacked’

T accounts are clear, visual representations of a business transactions that take the form of a “T” – one side for debits, one for credits. A T-Account records the debits and credits that affect an account, as well as the running balance of the account. A T-Account is an accounting tool used to track debits […]

Why Is Routing # Different on Deposit Slip?

Documenting and storing your deposit slip can save time and headaches down the road, especially if your deposit contains more than one check. When accounting systems like Quickbooks Online, Harvest, Freshbooks, and Xero pull in bank transactions, they lump all of your deposited checks into one transaction. If your bank has a limit on the […]