When a stock dividend is issued, the total value of equity remains the same from the investor’s and the company’s perspectives. Companies may still make dividend payments even when they don’t make suitable profits to maintain their established track record of distributions. Yes, dividends are considered a part of what’s...
The modified equity method is a variation of the equity method that allows for a more simplified recognition of the investor’s share of the investee’s profits or losses. Overall, equity accounting is a crucial tool in financial reporting that allows companies to accurately represent their investments in other entities. It...
As an investor, you’ll need to look at some key financial metrics so you can make well-informed decisions about the companies you add to your portfolio. Start by reviewing the gross profit margin of businesses you may find interesting. You can calculate this by subtracting the cost of goods sold...
When polled, 58% of employees admitted to stealing office supplies from work. But, stealing office supplies isn’t the only misuse of company assets you have to worry about. Employee fraud can be difficult to detect because there are so many types of fraud to worry about. Regular audits, both internal...
In the service industry, it’s the cost of paying wages and providing the supplies you need to perform those services. In addition to helping you determine your company’s current financial health, this understanding can help you predict future opportunities, decide on business strategy, and create meaningful goals for your team....
