Category: Bookkeeping

For this reason, investors need to know if a company has sufficient assets to cover the costs of its liabilities and other obligations. If a company has a higher level of liability compared to its assets, it has higher financial leverage and vice versa. One of the most crucial parameters to assess the health of…

The 10th and final step of the accounting cycle are Reversing Entry. Reversing entry is the opposite of the adjusting entry made in the last accounting period. In some computerized accounting systems, there is an option where each accountant or bookkeeper is able to choose or tick so that such entries will be automatically reversed…