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Journal entry for sold merchandise on account

Journal entry for sold merchandise on account Introduction In the merchandising business, we may need to sell merchandise on account in order to increase the sale volume we can make each year. Likewise, we need to make the journal entry for sold merchandise on account by recording the sale amount ...
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Journal entry for issuing check

Journal entry for issuing check Overview In business, the company may issue the check for various purchases from suppliers as well as for some expenses during the accounting period. Likewise, the company needs to make the journal entry for issuing the check whether it is issued for buying assets, paying ...
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Payment to creditors journal entry

Payment to creditors journal entry Overview In business, the company may owe some types of debts to the creditors such as suppliers, banks, or other lenders. Likewise, it needs to make the payment to creditors journal entry when the cash is paid out later to the creditors in order to ...
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Advantages and Disadvantages of Return on Equity

Advantages and Disadvantages of Return on Equity Return on Equity is the measurement of company ability to generate profit from the available equity.  It is the percentage that arrives from the company’s net profit over the stock equity. It is the management’s ability to turn equity into profit. Good or ...
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Advantages and Disadvantages of Absolute Liquidity Ratio

Advantages and Disadvantages of Absolute Liquidity Ratio Absolute liquidity ratio is the financial ratio used to evaluate the company liquidity ratio. Similar to the current and quick ratio, it accesses the company’s ability to pay off the current liabilities. However, the absolute liquidity ratio uses only the cash and marketable ...
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Advantages and Disadvantages of Return on Investment

Advantages and Disadvantages of Return on Investment Return on Investment is the financial ratio that measures how well the investment is. It is the percentage of the profit over the initial cost. A good investment will generate a high return on investment and will be able to recover in a ...
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