We get clear information from trial balance about debit entries and credit entries. But there is some more information required to adjust the trial balance. If a trial balance is in balance, does this mean that all of the numbers are correct? It is important to go through each step very carefully and recheck your […]
Category Archives: Bookkeeping
Depreciation expense is an accrual accounting concept meant to “match” the timing of the fixed assets purchase—i.e. Capital expenditure (Capex)—with the cash flow generated from fixed asset over a period of time. The tax shield refers to the amount of tax that has been saved by claiming depreciation as an expense. Depreciation Tax Shield Calculation […]
The book value per share (BVPS) metric helps investors gauge whether a stock price is undervalued by comparing it to the firm’s market value per share. BVPS is what shareholders receive if the firm is liquidated, all tangible assets are sold, and all liabilities are paid. Deriving the book value of a company becomes easier […]