Category Archives: Bookkeeping

Discounted Payback Period: Definition, Formula & Calculation

The payback period is a fundamental capital budgeting tool in corporate finance, and perhaps the simplest method for evaluating the feasibility of undertaking a potential investment or project. In case we decide to differentiate between risky projects by applying project-specific discount rates, we should be careful in choosing the discount rate for each venture. At […]

What Is a Business Credit Card? Definition & Key Traits

Credit cards impose the condition that cardholders pay back the borrowed money, plus any applicable interest, as well as any additional agreed-upon charges, either in full by the billing date or over time. Be sure to establish accounts with lenders, creditors or vendors that report payment history to at least one of the major business […]

Contribution Margin Overview, Guide, Fixed Costs, Variable Costs

Often, externally presented reports will contain gross margin (or at least both categories required to calculate gross margin). Gross margin considers a broader range of expenses than contribution margin. Gross margin encompasses all of the cost of in terms of liquidity inventory is goods sold regardless of if they were a fixed cost or variable […]

Contribution Margin Overview, Guide, Fixed Costs, Variable Costs

Often, externally presented reports will contain gross margin (or at least both categories required to calculate gross margin). Gross margin considers a broader range of expenses than contribution margin. Gross margin encompasses all of the cost of in terms of liquidity inventory is goods sold regardless of if they were a fixed cost or variable […]

APPRAISAL Definition & Usage Examples

Amy Fontinelle has more than 15 years of experience covering personal finance, corporate finance and investing. Appraisals can also be a helpful tool in resolving conflicts between heirs to an estate by establishing the value of the real estate or personal property to be divided. If you feel you received a low appraisal and want […]

Exploring Installment Sales Method: A Financial Strategy

This is an ideal recognition method for large-dollar items, such as real estate, machinery, and consumer appliances. When a seller allows a customer to pay for a sale over multiple years, the transaction is frequently accounted for by the seller using the installment method. Because of the long period of time involved, the risk of […]