February 6, 2023
The customer negotiates with the company on June 1 for a six-month note maturity date, 12% annual interest rate, and $250 cash up front. Even though the interest rate is not stated, the implied interest rate can be derived because the cash values lent and received are both known. In most cases, the transaction between […]
January 20, 2023
While external audits assess financial risks and statements, internal audits go further and consider your business’ growth, impact to the environment, employee culture, and reputation. Performing regular internal audits also shows the external auditors that your company has a means to improve your internal controls and thereby manage your organization effectively. An audit is the […]
January 19, 2023
Some business owners don’t have an income statement for their business, or their income statement doesn’t separate expenses into cost of goods sold, operating expenses, and non-operating expenses. In this case, you can still get a sense of how much it costs to run your business. Simply review your general ledger or expense report and […]