Category: Bookkeeping

The target number of units that need to be sold in order for the business to break even is determined by dividing the fixed costs by the contribution margin per unit. The contribution margin ratio is pivotal in break-even analysis, which determines the sales volume needed to cover all costs. This calculation reveals the sales…

While it is constitutionally a multi-party democracy where free elections are regularly held, it functions as a de facto one-party state, with the People’s Action Party (PAP) maintaining continuous political dominance since 1959. The PAP’s longstanding control has resulted in limited political pluralism and a highly centralised governance structure over national institutions. One of the…

It can tell you how much is receivable, which is especially important when managing reimbursable grants and multi-year pledges. It differentiates net assets with donor restrictions from those without restrictions. Reading and understanding nonprofit reports is essential for making sound decisions about your organization’s future. You can use unrestricted funds for any mission-oriented purpose, including…

Therefore, there is no expense (or revenue) to be reported on the income statement for the period of December 1-3. The remaining parts of this Explanation will illustrate similar transactions and their effect on the accounting equation when the company is a corporation instead of a sole proprietorship. It will become part of depreciation expense…

Companies use a fiscal year to mark the start and end of their revenue and earnings for a set timeframe, which can then be used for reporting, analysis, comparisons, and more. This material has been prepared without regard to any particular investment objectives or financial situation and has not been prepared in accordance with the…

A master of streamlining processes and maximizing profits, she empowers restaurants with insightful analytics, audit readiness, and a keen understanding of their unique financial landscape. Passionate about building relationships, Ruchika translates complex data into actionable insights, making her a trusted advisor and the engine behind Paperchase’s success. Bookkeeping goes beyond daily recordkeeping and involves generating…

Dilutive securities include options, warrants, and convertible securities. These can increase the number of shares, which might lower earnings per share. Companies use them to draw in investors or reward employees. It adds shares to the count usually based on the treasury stock method, which accounts for the cash that would be generated by the…

America’s 1.5 million nonprofit organizations are at the heart of our communities, from supporting arts and culture to providing essential services for people in need. ❤️ To successfully deliver these programs—without running out of resources—effective nonprofit budgeting is key. A budget is a planning tool that reflects an organization’s programs, mission, and strategic plan. They…

The lender must select one of the two alternatives and apply the method consistently throughout the life of the loan. Adjust for the “missing pennies” (noted in red) Budgeting for Nonprofits and total the bond payment amount, interest at yield rate, and amortized premiums. Amortization journal entries are included in the Financial Accounting and Reporting (FAR)…