Break-Even Analysis: How to Calculate the Break-Even Point

For options trading, the breakeven point is the market price that an underlying asset must reach for an option buyer to avoid a loss if they exercise the option. The breakeven point doesn’t typically factor in commission costs, although these fees could be included if desired. What happens recognition of accounts receivable and revenue when … Leer más [+]

General Ledgers: What Are They and Why They’re Important

The accounts receivable process begins when a customer purchases goods or services from a company and is issued an invoice. The customer usually has a set amount of time to pay the invoice, such as 30 days. If you’re recording a large number of transactions every month, keeping your ledger organized can get tricky. When … Leer más [+]

Financial Calculator: Fixed Annuity Calculator

If an index of an indexed annuity doesn’t receive enough positive growth, the annuity investor will receive a guaranteed minimum interest return at the bare minimum. The crediting formulas of indexed annuities generally have some type of limiting factor that is intended to cause interest earnings to be based only on a portion of the … Leer más [+]

Variable Costing Overview, Examples, and Accounting Formulas

You’ll be dealing a lot with these costs throughout your time as a consultant. So get familiar now with how these costs impact a business, and how a variable-cost-based business model differs from a fixed-cost-based business model. Since variable costs are tied to output, lower production volume means fewer costs are incurred, which eases the … Leer más [+]

The Difference between Bookkeeping and Accounting

Bookkeeping is the practice of organizing, classifying and maintaining a business’s financial records. It involves recording transactions and storing financial documentation to manage the overall financial health of an organization. Most businesses use an electronic method for their bookkeeping, whether it’s a simple spreadsheet or more advanced, specialized software. The comparison between accounting vs bookkeeping … Leer más [+]