Profitability and growth are two essential factors for companies. Several factors determine whether they will achieve this. Usually, the decisions that management makes can impact those factors significantly. The decision-making process must ensure that the company benefits from the underlying choice. During this process, real options can be crucial. What …

The accounting for goods sold to customers is straightforward. When a company delivers goods, it records an expense while reducing inventory. Similarly, it accounts for the revenues generated from those goods. For services, however, the process may differ, which falls under services rendered. Before understanding its accounting, though, it is …

Decision-making is crucial to the long-term success of companies and businesses. Usually, these decisions fall under the responsibility and authority of managers. Through the right choices, companies can grow significantly. However, a wrong decision can also hinder progress substantially. The concept of real options also applies to the decision-making process. …

Companies maintain accounts that help prepare financial statements. Usually, these accounts use the books of prime entry to track transactions. These may include various books, each of which has a specific purpose. The information from those books enables companies to record transactions in their general ledgers. One of the books …

In a company, firm, or organization, there’s a high need for professionals to manage different departments. The management of an organization’s investment portfolio should be handled by efficient professionals to ensure proficiency. One of such important positions is the Chief Investment Officer (CIO). This position is critical because the performance …

Companies use various costing methods to establish the unit cost of manufacturing a product. Determining these costs is highly crucial in understanding how a company’s production process works. On top of that, it provides a base for measuring the price to charge for the underlying product. One of the methods …

When it comes to bonds, mortgages, and other interest-rate-sensitive instruments, most people refer to the change in interest rates as basis points or bps for short. For example, you might hear someone say that a bond yield increased by 12 bps. The actual meaning is that the new yield is …

Net sales and gross sales are important financial metrics for businesses to track. Both metrics provide valuable insight into a business’s performance, thereby painting a picture of where a business is going. If you’re not sure what these metrics are and how they differ from each other, you’re in the …

Brokers and dealers are two key figures in the security market. However, both have their distinct functions and relevance to the security market. Practically, there is no security market without a broker. A broker provides a technical base for transactions. On the flip side, a dealer trades securities for his(her) …

Companies that manufacture products and services may offer sales returns or allowance policies. These are a normal part of the business that these companies conduct. Usually, customers return goods sold to them for various reasons. For companies, these sales returns are a reduction in sales. First, however, it is crucial …