The expanded accounting equation builds upon the basic accounting equation's use of assets, liabilities and equity by incorporating additional components such as revenues, expenses and withdrawals.

Fixed assets and working capital combined make up the major resources used by businesses to generate income. The ability of a company to use these resources efficiently directly affects profitability.

The three financial statements that every company produces include the income statement, the balance sheet and the statement of cash flows. The cash flow statement provides information about the state ...

Learn how to assess a company's financial strength using the EBITDA-to-interest coverage ratio, focusing on its ability to ...

Emily Guy Birken is a former educator, lifelong money nerd, and a Plutus Award-winning freelance writer who specializes in the scientific research behind irrational money behaviors. Her background in ...

Learn how to calculate and interpret the cash flow-to-debt ratio to assess a company's ability to manage debt effectively. Includes formulas and real-world examples.

Businesses depreciate long-term assets for both tax and accounting purposes. For tax purposes, businesses can deduct the cost of the tangible assets they purchase as business expenses. Microsoft Excel ...