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  • What is a balance sheet and why is it prepared?

    It will be represented as a current asset on the right side of the balance sheet. If the values of the adjusted purchases are provided, then the trial balance will show both the accounts for adjusted purchases and the closing stock. Using depreciation, a business expenses a portion of the asset’s value over each year…

  • The Five Types of Accounts in Accounting

    A balance sheet is often presented alongside one for a different point in time (typically the previous year) for comparison. The balance sheet is sometimes called the statement of financial position since it shows the values of the net worth of the entity. What is balance sheet with example? A strong balance sheet goes…

  • What’s a Good Profit Margin for a New Business?

    Here’s a more in-depth look at Gross Profit margin and net profit margin. Gross profit margin is calculated by subtracting cost of goods sold (COGS) from total revenue and dividing that number by total revenue. A negative gross profit margin can be reported by a company for several reasons. What is a good gross profit…