Kategori: Bookkeeping

Net Working Capital: Definition, Formula, Uses

If either sales or COGS is unavailable, the “days” metrics cannot be calculated. When this happens, it may be easier to calculate accounts receivables, inventory, and accounts payables by analyzing the past trend and estimating a future value. Create subtotals for total non-cash current assets and total non-debt current liabilities. Subtract the latter from the former […]

Coefficient of determination Wikipedia

We interpret the coefficient of multiple determination in the same way that we interpret the coefficient of determination for simple linear regression. The coefficient of determination is a statistical measurement that examines how differences in one variable can be explained by the difference in a second variable when predicting the outcome of a given event. […]

What is income? Definition and meaning

Its the total of all 1099 forms you receive for your services, plus any income you receive that was not reported on a 1099. Like gross income from an hourly or salaried position, self-employment gross income is the starting point when youre doing your taxes. Its not what you actually made because your expenses haven’t […]

Calculating and Understanding Real Interest Rates

The application of the Fisher equation proves that monetary policy can move nominal interest rates and inflation in the same direction. One of the key distinctions between nominal and real interest rates is how much you pay to borrow versus purchasing power. Low nominal rates encourage consumers to take on more debt and increase their […]