Firms can pay dividends in periods in which they incurred losses, provided retained earnings and the cash position justify the dividend. And in some states, companies can declare dividends from current earnings despite an accumulated deficit. The financial advisability of…
The resulting product costs may only reflect their fair portion of overhead expenses with precise allocation. It can lead to inaccurate pricing decisions, potentially affecting the profitability of individual products or even the overall business. Assigning manufacturing overhead costs…
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In February 2012, Wave officially launched Wave Payroll to the public in Canada,9 followed by the American release in November of the same year. The developer, Wave Financial Inc, indicated that the app’s privacy practices may include handling of data…
Managing inventory without the relevant software is fine if your online shop is still in the early stage. Audits are a crucial part of e-commerce stock management, key to maintaining inventory accuracy. The best practice is to perform audits regularly,…
For example, on June 15, the company ABC, which is a corporation, has declared a total of $100,000 of cash dividend to be paid to its shareholders. Of course, the board of directors of the company usually needs to make…
It involves paying out a nominal amount of dividends and retaining a good portion of the earnings, which offers a win-win. Your beginning retained earnings are the retained earnings on the balance sheet at the end of 2020 ($200,000, for…
The depreciated cost method always allows for accounting records to show an asset at its current value as the value of the asset is constantly reduced by calculating the depreciation cost. This also allows for measuring cash flows generated from the asset in…
For lean startups still fine-tuning their technology and attracting venture capital, temporarily operating at a loss may not be a bad thing. Your interest expense is what you spend to pay off your small business loans or lines of credit.…
A reduced number of shares in the market can boost share price and bring it to the right valuation level. Most commonly a company repurchases its shares when it wants to control its share prices. Along with it, the company…
