What is earnings per share
Publicly owned companies must report earnings per share (EPS) below the net income line in their income statements. This is mandated by generally accepted accounting practices (GAAP). The EPS gives investors a means of determining the amount the business earned on its stock share investments. In other words, EPS tells investors how much net income
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How to analyze a financial statement
It’s obvious financial statement have a lot of numbers in them and at first glance it can seem unwieldy to read and understand. One way to interpret a financial report is to compute ratios, which means, divide a particular number in the financial report by another. Financial statement ratios are also useful because they enable
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Parts of an Income Statement, Part 3
While some lines of an income statement depend on estimates or forecasts, the interest expense line is a basic equation. When accounting for income tax expense, however, a business can use different accounting methods for some of its expenses than it uses for calculating its taxable income. The hypothetical amount of taxable income, if the
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Parts of an Income Statement, Part 2
Of course profit and cost of goods sold expense are the two most critical components of an income statement, or at least they’re what people will look at first. But an income statement is truly the sum of its parts, and they all need to be considered carefully, consistently and accurately. In reporting depreciation expense,
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Parts of an Income Statement, Part 1
The first and most important part of an income statement is the line reporting sales revenue. Businesses need to be consistent from year to year regarding when they record sales. For some business, the timing of recording sales revenue is a major problem, especially when the final acceptance by the customer depends on performance tests
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Measuring Costs
Measuring profits or net income is the most important thing accountants do. The second most important task is measuring costs. Costs are extremely important to running a business and managing them effectively can make a substantial difference in a company’s bottom line. Any business that sells products needs to know its product costs and depending
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Types of Costs
Direct costs are those costs that cann be directly attributed to a product or product line, or to one source of sales revenue, or one business unit or operation of the business. An example of a direct cost would be the cost of tires on a new automobile. Indirect costs are very different and can’t
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About GAAP
While many businesses assume that accountants are bound by generally accepted accounting practices and that these are inviolate, nothing could be further from the truth. Everything is subject to interpretation, and GAAP is no different. For one thing, GAAP themselves permit alternative accounting methods to be used for certain expenses and for revenue in certain
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Budgeting
Ugh, budgeting is one of those topics we’d rather avoid, but in business, it’s an absolute necessity. To prepare a reasoned and thoughtful budget, an accountant must start with a broad-based critical analysis of the most recent actual performance and position of the business by the managers who are responsible for the results. Then the
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What is a sole proprietorship?
A sole proprietorship is the business or an individual who has decided not to carry his business as a separate legal entity, such as a corporation, partnership or limited liability company. This kind of business is not a separate entity. Any time a person regularly provides services for a fee, sells things at a flea
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What are partnerships and limited liability companies?
Some business owners choose to create partnerships or limited liability companies instead of a corporation. A partnership can also be called a firm, and refers to an association of a group of individuals working together in a business or professional practice. While corporations have rigid rules about how they are structured, partnerships and limited liability
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What is a corporation?
Most businesses start out as a small company, owned by one person or by a partnership. The most common type of business when there are multiple owners is a corporation. The law sees a corporation as real, live person. Like an adult, a corporation is treated as a distinct and independent individual who has rights
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جامعة الناصر تقيم الفعالية المركزية للاحتفال باسبوع الشهيد 1446هجرية
الثلاثاء 17 جماد اول 1446 هجرية الموافق 19 نوفم...جامعة الناصر تنظم الندوة الثانية ضمن فعاليات وانشطة الذكرى السنوية للشهيد في مبنى كلية الهندسة وعلوم الحاسوب
نظمت جامعة الناصر صباح الأثنين الندوة الثانية ف...جامعة الناصر تدشن فعالياتها الخاصة لإحياء أسبوع الشـ هـيد 1446هـ
بحضور رئيس الجامعة الاستاذ الدكتور عبدالله حسين...جامعة الناصر تنظم الوقفة التضامنية الاسبوعية مع غزة ولبنان وتؤكد الجهوزية في مواجهة قوى الاستكبار
صنعاء ; الاربعاء 11 جمادي الاولى1446ھ الموافق 1...طلبة الصيدلة بجامعة الناصر يدعمون مركز مرضى الثلاسيميا بمنتوجات دوائية
قام طلبة الصيدلة بجامعة الناصر، بتسليم ريع فعال...