Bookkeeping

Noncumulative Preference Shares Stock What Are They?

The value of a convertible preferred stock is ultimately based on the performance of the common stock. The issuance of non-cumulative preferred stock can have a nuanced impact on shareholder equity, influencing both the company’s financial structure and the perceptions of various stakeholders. When a company issues non-cumulative preferred stock, it raises capital without the …

Noncumulative Preference Shares Stock What Are They? Read More »

Learn About Retained Earnings for Business Owners

The calculation of retained earnings is not just a mechanical process but also a reflection of a company’s strategic decisions. Companies with high retained earnings might be focusing on growth and expansion, while those with lower retained earnings might be returning more value to shareholders through dividends. This balance between reinvestment and shareholder returns can …

Learn About Retained Earnings for Business Owners Read More »

What is Standard Costing?

Standard costs also assist the management team when making decisions about long-term pricing. The importance of Standard Costing in an organization can be understood by the fact that it provides management with valuable information for decision-making. Reporting problematic variances to top management for corrective action. Remedial steps are suggested to avoid repeating unfavorable variances in …

What is Standard Costing? Read More »