Tag: Tutorials

contribution margin formula

Contribution Margin Formula

The contribution margin formula is used to calculate contribution margin. Contribution margin is the difference between the revenue and the variable costs of a business.

Last modified July 16th, 2019 by Michael Brown
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Sum of the years digits depreciation breakdown

Sum of the Years Digits Depreciation

The sum of the years digits depreciation method sometimes referred to as the SYD depreciation is an accelerated depreciation method used to produce a depreciation expense which is higher in the earlier years.

Last modified July 16th, 2019 by Michael Brown
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equivalent units formula

Equivalent Units FIFO method

The equivalent units FIFO method is used in process costing to express partially completed units of product in terms of finished units.

The objective of using equivalent units is to be able to allocate production costs to completed and partially completed units.

Last modified November 26th, 2019 by Michael Brown
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equivalent units formula

Equivalent Units of Production

The equivalent units of production method is used in process costing to express partially completed units of product in terms of finished units.

The objective of using equivalent units is to be able to allocate production costs to completed and partially completed units.

Last modified November 26th, 2019 by Michael Brown
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users of accounting information

11 Users of Accounting Information

Who are the users of management accounting information? The users of accounting information are numerous and varied and include managers, owners, and investors each of which uses the information for a different purpose.

Last modified December 19th, 2019 by Michael Brown
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outstanding loan balance v 1.0

Outstanding Loan Balance Calculation

As regular payments will clear a loan balance over the term, the present value (PV) of the payments must be equal to the value of the loan. It follows that the remaining balance on an loan can be calculated by calculating the present value (PV) of the outstanding loan repayments.

Last modified March 1st, 2023 by Michael Brown
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available for sale securities v 1.0

Available For Sale Securities

Available for sale securities are marketable securities which are not classified as trading securities or held to maturity securities. Unrealized gains and losses are recorded as other comprehensive income, a separate section of shareholders equity.

Last modified November 21st, 2019 by Michael Brown
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trading securities accounting

Trading Securities Accounting

Trading securities are a form of short-term marketable security which a business purchases with the intention of selling at a profit in the near future. Gains and losses are dealt with through the income statement of the business.

Last modified November 21st, 2019 by Michael Brown
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auto loan payment formula

Auto Loan Payment Example

A car is financed using a three-year loan. The loan has a 8% nominal annual interest rate, compounded monthly. The price of the car is 7,000, and a deposit of 2,000 is paid in cash. Calculate the monthly auto loan payments, assuming that the payments start one month after the purchase.

Last modified November 26th, 2019 by Michael Brown
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closing journal entries

Closing Journal Entries

Closing journal entries are used to close the temporary accounts for the accounting period, and transfer the balances to the retained earnings account. The accounting closing entries are part of the accounting cycle.

Last modified June 24th, 2022 by Michael Brown
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trade discount vs cash discount

Trade Discount

As a trade discount is deducted before any exchange takes place with the customer, it does not form part of the accounting transaction, and is not entered into the accounting records of the business.

Last modified November 23rd, 2022 by Michael Brown
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