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QuickBooks has been phasing out its desktop product offerings and encouraging examples of key journal entries businesses to move to using one of its online products. After Sept. 30, 2024, QuickBooks Desktop plans will no longer be offered to new customers (although support and updates will continue for existing customers). QuickBooks Enterprise, then, will be […]

The $4 sales tax is a current liability until distributed within the company’s operating period to the government authority collecting sales tax. Because part of the service will be provided in 2019 and the rest in 2020, we need to be careful to keep the recognition of revenue in its proper period. If all of

Large-cap stocks are more frequently traded and usually represent well-established, stable companies. In contrast, small-cap stocks often belong to newer, growth-oriented firms and tend to be more volatile. Public companies need extra cash for many purposes, including upgrading production facilities, expanding into new markets, and pursuing acquisitions. One of the easiest ways to raise funding

Now by definition, we can come to the conclusion that high debt to equity ratio is bad for a company and is viewed negatively by analysts. Note a higher debt-to-equity ratio states the company may have a more difficult time covering its liabilities. In fact, debt can enable the company to grow and generate additional income.

As an example, many nonfinancial corporate businesses have seen their D/E ratios rise in recent years because they’ve increased their debt considerably over the past decade. Over this period, their debt has increased from about $6.4 billion to $12.5 billion (2). It’s also important to note that interest rate trends over time affect borrowing decisions,