Inventories represent one of the most important elements of a business. Much of a company’s resources is invested in this asset, which is usually its chief source of revenue. In recent years, accountants have given Inventories Represent One of the Most Important Elements of a Business […]
Measuring profits or net income is the most important thing accountants do. The second most important task is measuring costs. Costs are extremely important to running a business and managing them effectively can make a Measuring Costs […]
Long-term construction contracts arise when a company agrees to construct an asset (e.g., buildings, ships, bridges) for another entity over an extended period. The buyer may provide advance payments to help finance construction, but the Revenue Recognition Prior to the Period of Sale […]
More companies built up rather than subtracted from their cash holdings last quarter, but some plan to reverse course the last three months of 2013. While many institutional investors risk their cash buying increasingly expensive Uncertainty Leads to Higher Corporate Cash Balances […]
When Cisco’s low-to-mid $20 stock hit the $15 levels in 2011, the networking equipment maker put a number of key turnaround strategies in place. But none took a higher priority than transforming its finance function, Transforming Cisco: One Finance Function At a Time […]
For companies with fiscal years beginning in January, summer often marks the beginning of the long, inefficient and hassle-inducing ritual known as “annual budgeting.” CFOs and finance teams know this ritual all too well. It Continuous Not Annual Budgeting Improves Accuracy […]
Acquirers in 2012 allocated a smaller percentage of their purchase prices to goodwill. But goodwill dwarfed any other kind of intangible. How much of the purchase price of a transaction acquirers allocate to goodwill and Purchase Price Allocation to Goodwill Drops […]