Accounting Equation Overview, Formula, and Examples

The Accounting Equation is a vital formula to understand and consider when it comes to the financial health of your business. The accounting equation is a factor in almost every aspect of your inventory in transit business accounting. If a transaction is completely omitted from the accounting books, it will not unbalance the accounting equation. …

Net Realizable Value NRV Formula Example

As technology evolves and production capabilities expand, unsold inventory items may quickly lose their luster and become obsolete. This is true for even recently manufactured products; companies not in tune with market conditions may be producing goods that are already outdated. The ultimate goal of NRV is to recognize how much proceeds from the sale …