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This can appear to show EPS growth, even while earnings may be static or declining. EPS is affected by a company’s earnings and number of outstanding shares. If earnings decrease or the number of shares increases, EPS will decline as well. Earnings forecasts are based on educated guesswork from analysts and are often too rosy, …

Calculating Earnings per Share EPS Read More »

One of the most common causes of discrepancies in bank reconciliations is delays in deposit and transaction processing. Checks sent or received at the end of the day, or toward the end of the month, may be subject to high low method calculate variable cost per unit and fixed cost delay which will prevent them …

What Is a Bank Reconciliation Statement, and How Is It Done? Read More »

Now, the income summary account has a zero balance, whereas net income for the year ended appears as an increase (or credit) of $14,750. Now that we know the basics of closing entries, in theory, let’s go over the step-by-step process of the entire closing procedure through a practical business example. That’s exactly what we …

Use Closing Entries to Wrap up Your Accounting Period Read More »