From mitigating risk to optimizing resources, businesses that master inventory turnover gain agility, efficiency, and sustained financial success. Before interpreting the inventory turnover ratio and making an opinion about a firm’s operational efficiency, it is important to investigate how the firm assigns cost to its inventory. For example, companies using FIFO cost flow assumption may have...
The controlled disbursement practice is a feature that banks offer to corporate clients where companies schedule payments to maximize the interest earned on a company’s account. The main source of entries for this journal are check stubs and payment requests. This article will tell you what you need to know about keeping a cash disbursement journal, and how to create your own. Handling your...
To figure your ACRS deduction, you multiply the unadjusted basis in your recovery property by its applicable percentage for the year. Unadjusted basis is the same amount you would use to figure gain on a sale, but it is figured without taking into account any depreciation taken in earlier years. However, reduce your original basis by the amount of amortization taken on the property and by any...
