Day Sales in Inventory What it is and How to Calculate it

Check out our detailed blog post on how to calculate the cost of goods sold. It is most common to use the number of days in the year (365); however, quarters, months, or weeks can also be used in the calculation. Since we are looking at annual figures in our example,...

Accounting Rate of Return ARR Definition and Formula

A copy of 11 Financial’s current written disclosure statement discussing 11 Financial’s business operations, services, and fees is available at the SEC’s investment adviser public information website – from 11 Financial upon written request. Accounting Rate of Return...

Contra Account Definition + Journal Entry Examples

There are four key types of contra accounts—contra asset, contra liability, contra equity, and contra revenue. Contra assets decrease the balance of a fixed or capital asset, carrying a credit balance. Contra liabilities reduce liability accounts and carry a debit...