Many businesses prefer cash-basis accounting for taxes because it can make it easier to maintain enough cash to pay taxes. However, the accrual system may be better for complete accuracy regarding yearly revenue. Specifically, it focuses on when money is received, or expenses get paid, which may not occur exactly when these items are accrued. […]
When joining a new organization, understanding its structure, needs and goals can be tremendously beneficial for short- and long-term success. Two of the major organizational structures, nonprofits and for-profits, have different missions, target audiences, and problem-solving strategies. Students with a Master of Public Administration degree may find opportunities for roles within either organizational structure, so […]
In the United States, you can search for the company’s status on the Internal Revenue Service (IRS) website or the state’s Secretary of State website. In order to obtain tax-exempt status, the organization must apply for 501(c)(3) status through the Internal Revenue Service (IRS). These organizations can also be tax-exempt under different sections of the […]
In the United States, you can search for the company’s status on the Internal Revenue Service (IRS) website or the state’s Secretary of State website. In order to obtain tax-exempt status, the organization must apply for 501(c)(3) status through the Internal Revenue Service (IRS). These organizations can also be tax-exempt under different sections of the […]
When joining a new organization, understanding its structure, needs and goals can be tremendously beneficial for short- and long-term success. Two of the major organizational structures, nonprofits and for-profits, have different missions, target audiences, and problem-solving strategies. Students with a Master of Public Administration degree may find opportunities for roles within either organizational structure, so […]
The estimated or budgeted overhead is the amount of overhead determined during the budgeting process and consists of manufacturing costs but, as you have learned, excludes direct materials and direct labor. Examples of manufacturing overhead costs include indirect materials, indirect labor, manufacturing utilities, and manufacturing equipment depreciation. Another way to view it is overhead costs […]
Our work has been directly cited by organizations including Entrepreneur, Business Insider, Investopedia, Forbes, CNBC, and many others. We follow strict ethical journalism practices, which includes presenting unbiased information and citing reliable, attributed resources. Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive […]
This is why it can be especially important to check a company’s liquidity levels if it has a negative book value. The shareholders’ equity on a company’s balance sheet can be a quick way to check a company’s solvency and financial health. Solvency ratios are extremely useful in helping analyze a firm’s ability to meet […]
In addition to using multiple metrics, you should get industry benchmarks and compare your values to those of similar companies. A company’s long-term financial health depends on multiple factors, some of which cannot be measured or predicted. However, there is a great deal of financial information available that can help you assess a company’s solvency. […]