How would an ancient Israelite do arithmetic like multiplication? This may be relevant to the Hebrew word אֶלֶף transliterated as eleph or elef
Income Statement Consolidation
An income statement consolidation is the process of combining the income statement of a parent company with all of its subsidiary companies into one single consolidated income statement. The consolidated income statement presents the financial position of this single economic entity. There are 8 steps in the income statement consolidation process. These are the same […]
Accounting Basics for Business Consolidations
Accounting Treatments for an Investment in Equity Securities An investment in equity securities occurs when a small business purchases some equity or ownership interest in another company. How this investment is treated in the accounting books depends on the extent of control the investing company has over the investee company. When there’s no significant influence […]
EBITDA is (Earnings Before Interest, Taxes, Depreciation and Amortization) a metric used by financial professionals to estimate a company’s profitability by stripping out non-cash expenses. EBITDA makes it easier for finance professionals to compare different companies across different industries. It helps convert an apples to oranges comparison to an apples to apples comparison. EBITDA gets […]
Net working capital is current assets less current liabilities. When current assets are greater than current liabilities, then net working capital is positive and vice versa. The main components of net working capital are cash, inventory, receivables and payables. A small business can intentionally invest in net working capital to make a change in net […]
