RATES OF RETURN
There are two measures of profitability common in the financial community, return on assets (ROA) and return on equity (ROE). ROA = net income /…
RATES OF RETURN
STOCK MARKET RATIOS
Several ratios are calculated not from the income statements and balance sheets of organizations, but from data associated with their stock market performance. The three…
Different pricing strategies
Market penetration has as its main objective the capture of a large share of the market as quickly s possible. In the short term this…
Methods of pricing
Having established the strategy it intends to follow, the business now needs to work out the price it will charge. This will depend on the…
Personal Factors Affecting Buying Behaviors
A buyer’s decisions also are influenced by personal characteristics such as the buyer’s age and life-cycle stage, occupation, economic situation, lifestyle, and personality and self-concept….
The Need for Adjusting Entries
For purposes of measuring income and preparing financial statements, the life of a business is divided into a series of accounting periods. This practice enables…
Accruing Wages Payable
If you have employees, chances are you owe them a certain amount of wages at the end of an accounting period. If so, an adjusting…
Adjusting Entries
The number of adjustments needed at the end of each accounting period depends entirely upon the nature of the company’s business activities. However, most adjusting…
Prepaid Insurance
Typically, insurance premiums are paid when coverage begins. So if you paid for an insurance policy during the accounting period, you probably bought coverage for…
Prepaid Insurance
Typically, insurance premiums are paid when coverage begins. So if you paid for an insurance policy during the accounting period, you probably bought coverage for…