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Bank Reconciliation Statement Definition Bank Reconciliation: To do a bank rapprochement you would match the cash harmonies on the balance sheet to the comparable amount on your bank statement, determining the differences between the two in order to…

Common Size Income Statement The term “Common Size Income Statement” refers to the presentation of all the line items in an income statement in a separate column in the form of relative percentages of total sales primarily. It…

Accounting Profit | Accounting Profit Definition Accounting profit is a company’s total earnings, calculated according to generally accepted accounting principles (GAAP). It includes the explicit costs of doing business, such as operating expenses, depreciation, interest, and taxes. Profit is a widely monitored financial metric that is regularly…

The cost of equity is the return a company requires to decide if an investment meets capital return requirements. Firms often use it as a capital budgeting threshold for the required rate of return. A firm’s cost of equity…

Bad Debt Expense | What Is Bad Debt Expense Bad debt expense is related to a company’s current asset accounts receivable. Bad debts expense is also referred to as uncollectible accounts expense or doubtful accounts expense. Bad debts expense results because a…