Category Archives: Bookkeeping

NRV for accounts receivable is calculated as the full receivable balance less an allowance for doubtful accounts, which is the dollar amount of invoices that the company estimates to be bad debt. Now that we have our available inventory as of year-end, we need to compare its cost to the estimated selling price. As we […]

Get instant access to video lessons taught by experienced investment bankers. Learn financial statement modeling, DCF, M&A, LBO, Comps and Excel shortcuts. In effect, companies are prevented from overstating net realizable value the value of their inventory, which reduces the risk of misleading investors. In this blog, we will explain the concept of NRV, how […]

The year’s closing balance is calculated as lease liability + interest – lease payment. The income statement under GAAP can be presented in either a single-step or multi-step format. The single-step format aggregates all revenues and gains, and subtracts all expenses and losses to arrive at net income. The multi-step format, on the other hand, […]

The rate implicit in the lease is the most appropriate discount rate to use for your lease calculations. If you’re unsure about the implicit rate after combing through the lease, there are ways to determine the rate on your own. First, determine the fair value of the asset at the beginning and end of the […]

Burn rate is the amount of money your business needs in a certain period—usually a month—to cover all expenses. In other words, burn rate tells you how quickly your business “burns through” capital. A company can reduce its gross burn rate by producing revenue and/or cutting costs such as reducing staff or seeking cheaper means […]

Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to take an action on their website. Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his […]

When working with dependent variables, it’s vital to maintain consistent methods of measurement and observation. This consistency ensures that the story revealed is trustworthy and that the insights gained can be the foundation for further discovery and understanding. Whether it’s understanding how temperature affects sea levels or how diet influences health, dependent variables are the […]

They help scientists and researchers observe the effects of changes, leading to breakthroughs and innovations. By grasping the role of dependent variables, we open doors to a myriad of possibilities, uncovering the secrets of the natural world and contributing to the rich tapestry of scientific discovery. From the musings of ancient philosophers to the sophisticated […]

When you adjust the brightness of your room to see how well you can read a book, the readability is your dependent variable. Researchers should also consider the potential impact of their study on vulnerable populations and ensure that their methods are unbiased and free from discrimination. The key point here is that we have […]

They help scientists and researchers observe the effects of changes, leading to breakthroughs and innovations. By grasping the role of dependent variables, we open doors to a myriad of possibilities, uncovering the secrets of the natural world and contributing to the rich tapestry of scientific discovery. From the musings of ancient philosophers to the sophisticated […]