Industry classification is valuable for economic analysis because it leads to largely distinct categories with simple relationships. At the same time, entirely new industries may branch off from older ones once a significant market becomes apparent (as an example, the semiconductor industry has become distinguished from the wider electronics industry). For example, the retail trade sector contains industries such as…
Accounts payable is not an asset (i.e. money coming in) – It is https://www.bookstime.com/ recorded as a liability on the balance sheet. By monitoring this payout frequency, you can better manage how efficiently your business is collecting revenue—the higher the value, the more productive your A/R processes likely are. You would also adjust this total for any credits received from…
This is the same as the previous result, but it gives you more insight into how your cash flow changes over time. You can see that you did not spend any money in January, but you spent $15,000 in both February and March. This could indicate that you had some one-time or seasonal expenses, or that your revenue was lower…