What are the Examples of Assets?
Accounting

What are the Examples of Assets?

An asset is something that is expected to yield a benefit in a future period. If an asset is expected to be entirely consumed within…
What is Return on Total Assets?
Accounting

What is Return on Total Assets?

The return on total assets compares the earnings of a business to the total assets invested in it. The measure is intended to discern whether…
What is Virtual Close?
Accounting

What is Virtual Close?

A virtual close involves the use of fully integrated company-wide accounting systems to produce financial statements at any time, on demand. This approach requires not…
How do you Collect Past Due Invoice?
Accounting

How do you Collect Past Due Invoice?

A past due invoice is a billing that has not been paid as of its due date. If a business extends credit to its customers,…
What is the difference between Gross Margin and Operating Margin?
Accounting

What is the difference between Gross Margin and Operating Margin?

Gross margin measures the return on the sale of goods and services, while operating margin subtracts operating expenses from the gross margin. These two margins…
What is Leverage Ratios?
Accounting

What is Leverage Ratios?

Leverage ratios is used to determine the relative level of debt load that a business has incurred. These ratios compare the total debt obligation to…
What is Cost Object?
Accounting

What is Cost Object?

A cost object is any item for which costs are being separately measured. It is a key concept used in managing the costs of a…
What is Direct Material Cost?
Accounting

What is Direct Material Cost?

Direct material cost is the cost of the raw materials and components used to create a product. The materials must be easily identifiable with the…
What is Average Collection Period?
Accounting

What is Average Collection Period?

The average collection period is the average number of days required to collect invoiced amounts from customers. The measure is used to determine the effectiveness…
What is an Irrelevant Cost?
Accounting

What is an Irrelevant Cost?

An irrelevant cost is a cost that will not change as the result of a management decision. However, the same cost may be relevant to…
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