When a company purchases inventory for cash, one asset will increase and one asset will decrease. Because there are two or more accounts affected by every transaction, the accounting system is referred to as the double-entry accounting or bookkeeping system. Examples of assets include cash, accounts receivable, inventory, prepaid insurance, investments, land, buildings, equipment, and […]
Category Archives: Bookkeeping
It also reveals the status of your orders and inventory so you can attend to customers’ needs. QuickBooks Online is a cloud-based accounting platform while QuickBooks is a desktop program that provides additional inventory management features. Although QuickBooks Online is a great cloud-based accounting platform, it isn’t the only one. The app has most of […]
This takes an even closer look at the liquidity situation, as only the most liquid funds are compared to the current liabilities. These are the liquid funds that are available to the company very quickly, which is an advantage if an unexpected higher sum has to be paid at short notice. Liquidity ratios provide information […]
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