Bookkeeping

For instance, when two gears of different sizes mesh and rotate, the pinion will turn faster and with less torque than the larger gear. Gearing refers to the relationship, or ratio, of a company’s debt-to-equity (D/E). Based on the following details, you need to assess whether ABC meets the bank’s expectation of gearing ratio. What is […]

For every $4 contributed by common stockholders, there are only $3 contributed by fixed cost bearing funds. Hence, the capital provided by these two is said to offer a fixed return. If you have more questions about financial formulas and concepts, visit our resource hub! Agicap is THE cash management solution that revolutionizes the way

Plant assets (other than land) will be depreciated over their useful lives. In Accounting for Churches this article, we’ve explained the concept of plant assets in very detail. We hope you’ll know the difference between plant assets and other non-current assets and the accounting treatment. Later on, the company will charge the depreciation according to

They consist of long-term tangible property that businesses use to produce goods and services. This category includes physical items like land, machinery, buildings, vehicles, and equipment. The IAS 16 of the IFRS governs the rules regarding recognizing and recording the plant assets in the company’s financial statements. Instead, a part of the cost is periodically