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Accounting All-in-One For Dummies (+ Videos and Quizzes Online), 3rd Edition
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Accounting All-in-One For Dummies (+ Videos and Quizzes Online), 3rd Edition

by Michael Taillard, Joseph Kraynak, Kenneth W. Boyd
August 2022
Beginner
752 pages
19h 29m
English
For Dummies
Content preview from Accounting All-in-One For Dummies (+ Videos and Quizzes Online), 3rd Edition

Chapter 6

Formulating Equations

IN THIS CHAPTER

Bullet Calculating profit margin and rate of return

Bullet Making the most of a company’s existing assets

Bullet Wrapping your brain around the concept of liquidity

Bullet Evaluating a company’s solvency

Bullet Handling your projects with care

In business, information is most valuable when you can use it to make well-informed decisions. Financial information can help you reduce spending, operate more efficiently, and increase profits.

This chapter covers some useful financial formulas that you can use to make financially sound data-based decisions. We show you how to gauge a company’s profitability, determine how efficiently the company is using its existing assets, manage cash more effectively, and keep an eye on long-term debt. (An asset is a resource owned by a company that’s used to generate revenue for that company.)

Analyzing Profitability

Profit is defined in the income-statement formula as revenue less expenses, and it can also be defined as net income. Although ...

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Publisher Resources

ISBN: 9781119897668Purchase Link