Book Value: Meaning, Formula, Calculation and Examples

The next day, the market price drops, so the P/B ratio becomes less than one. That means the market valuation is less than the book valuation, so the market might undervalue the stock. The following day, the market price zooms higher and creates a P/B ratio greater than one. That tells us the market valuation […]

Price Earnings Ratio Formula, Examples and Guide to P E Ratio

A P/E ratio, even one calculated using a forward earnings estimate, doesn’t always tell you whether the P/E is appropriate for the company’s expected growth rate. To address this, investors turn to the price/earnings-to-growth ratio, or PEG. One useful way to check if a stock’s PE ratio is reasonable is to also look at a related metric that […]

How to Make Adjusting Entries

Accrued revenue is particularly common in service related businesses, since services can be performed up to several months prior to a customer being invoiced. In order to account for that expense in the month in which it was incurred, you will need to accrue it, and later reverse the journal entry when you receive the […]

Statement of Functional Expenses, Statement of Cash Flows

The Statement of Functional Expenses provides a detailed breakdown of a nonprofit organization’s financial activities. It includes components such as Program Services, Management and General Expenses, Fundraising Expenses, and Total Expenses. This statement actively provides insight into the effective use of resources to fulfill the organization’s mission. By adhering to these best practices, nonprofits can […]

Closing Entries Using Income Summary

To close a revenue account, debit the revenue account for its balance and credit the income summary account with the same amount, consolidating the revenue for the period. This step ensures that the revenue is accurately transferred and the account is reset for the next period. It is also commonly found that an income summary […]

The 2021 Tax Deadline Extension: Everything You Need to Know

If you haven’t filed for years and you owe money to the IRS, you may be hit with penalties but the agency will can work with you to manage payment plans. Tax season officially started Monday, January 29th, when the IRS began accepting tax returns. Whether you plan to file your tax return turbo tax […]

Hello, On my W2 box 14 indicates FFSELF, however there is no category listed, how do I know which category to select from box 14 dropdown to submit my return ? Tax Year 2020

While ADP only offers to export data to QuickBooks, Xero, Wave and Creative Solutions, Gusto integrates fully with a large number of third parties, such as QuickBooks, Xero, FreshBooks, Clover, Shopify and more. ADP offers a pay history of W2s and 1099 for up to three years, Gusto offers lifetime access to paystubs and W2s. […]

What is Physical Inventory? How to and Tips 2024

By following these steps, businesses can ensure that their physical inventory counting is accurate and efficient, leading to reliable inventory records and efficient inventory management. Accurate inventory records are essential for businesses to make informed decisions, optimize inventory turnover, and prevent stockouts or overstocking, leading to increased profitability and customer satisfaction. Effective physical inventory management […]

ADP RUN Payroll Review 2023: Cost & Features

Benefits administration, retirement, health insurance and workers’ compensation features are available as add-ons. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded adp discounts in thousands of hours of research. Our partners cannot […]

Prime Costs vs Conversion Costs: What’s the Difference?

Also, make sure you don’t confuse cost per conversion with other similar terms. A targeted campaign is sure to increase your conversion rate. And better conversion rate helps you reduce the conversion cost. Rather, such expenses are considered as indirect labor which goes to the entity’s total manufacturing overhead cost (discussed later in this article). […]