The only conceivable reason for selling at a price that generates a negative contribution margin is to deny a sale to a competitor. The contribution margin represents the…

Calculating the breakeven point is a key financial analysis tool used by business owners. Once you know the fixed and variable costs for the product your business produces or…

As new technologies emerge and become more widely adopted, products that were once innovative and popular may quickly become outdated and unsellable. For example, a technology company that…

Once net income is adjusted for all non-cash expenses it must also be adjusted for changes in working capital balances. Since accountants recognize revenue based on when a…

Find help articles, video tutorials, and connect with other businesses in our online community. Opinions are our own, but compensation and in-depth research may determine where and how…

If a portion of a long-term debt is payable within the next year, that portion is classified as a current liability. Liabilities are financial obligations a business owes…

If a check doesn’t clear, you may need to contact the check writer for another payment or contact the bank to ask how long the check-clearing process will…