Owner’s Equity Definition, Formula, Examples & Calculations

For normal day-to-day business analysis, owner’s equity is both a valuable indication of a business’s financial health and a way to track whether the company is gaining or losing value over time. Many owners use equity to demonstrate their company’s value to lenders...

Direct labor rate variance explanation, formula, reasons, example

The standard rate per hour is the expected rate of pay for workers to create one unit of product. The actual hours worked are the actual number of hours worked to create one unit of product. If there is no difference between the standard rate and the actual rate, the...

Rebates vs Discounts: Whats the Difference? Wiser Retail Strategies

When the trader places a short sale trade, the stock must be delivered to the buyer on the trade settlement date. Example of Discount – Goods worth 10,000 were sold by Unreal Corp. to ABC Corp. @10% discount each. This means a trade discount of 10% and an additional...

What Is a Bearer Bond? Benefits, Risks, and Redemption Guide

These bonds provide a high annual percentage yield (APY), fixed income, and the convenience of no fees or complicated paperwork. As you navigate your investment options, consider how Compound Real Estate Bonds could fit into your financial strategy, offering both...

Last In, First Out LIFO: The Inventory Cost Method Explained

He has worked as an accountant and consultant for more than 25 years and has built financial models for all types of industries. He has been the CFO or controller of both small and medium sized companies and has run small businesses of his own. He has been a manager...