Debt-to-Equity D E Ratio: Meaning and Formula

In addition, the reluctance to raise debt can cause the company to miss out on growth opportunities to fund expansion plans, as well as not benefit from the “tax shield” from interest expense. According to Pierre Lemieux, the debt-to-equity ratio is interesting because it can be easily tracked from month to month. BDC provides access… Continue reading Debt-to-Equity D E Ratio: Meaning and Formula

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FIFO Method: First in First Out Principle Guide + Examples

The FIFO and LIFO compute the different cost of goods sold balances, and the amount of profit will be different on December 31st, 2021. As a result, the 2021 profit on shirt sales will be different, along with the income tax liability. Again, these are short-term differences that are eliminated when all of the shirts… Continue reading FIFO Method: First in First Out Principle Guide + Examples

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Categorized as Bookkeeping