While interest rates are currently low, funds invested in a savings account are very liquid because they can be withdrawn at any time. The risk of losing capital is minimal…

Called the free cash flow yield, it’s a better indicator than the P/E ratio. Companies have been required to provide a statement of cash flow since 1987. The purpose of…

If you haven’t used FreshBooks, the setup wizard on the dashboard (see image below) will guide you through the process. But unless you are a small business with plans for…

Examples of equity contra accounts are Owner Draws and Repurchased Treasury Stock Shares. Since it is a contra asset account, this allowance account must have a credit balance (which is…

Though not literally cash, it’s money that can be easily and quickly accessed, which is why it’s “on hand.” If there’s a shortage or overage, a journal line entry is…