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The Current Ratio: Formula, Example, Calculation, And More

Overview The current ratio is the measure of the short-term liquidity of a company. It shows the ability of a company to meet its short-term liability through its current assets. It is important to understand the current ratio, how it works, and what information it...

Inventories Costing: Method, Example And More

Overview Inventory costing is an integral part of inventory control and inventory management. It helps a business determine its cost of goods sold and eventually in gross profits. Different inventory costing methods can bring the different cost of goods sold results....

What Is Sales Tax And How To Calculate It?

Businesses earn income by business operations, and individuals earn income by doing jobs. Similarly, taxes are the main source of income for government bodies. Public services, legislature, establishment, and all government services available to citizens are funded by...

Perpetual Vs. Periodic Inventory System – Key Differences

The perpetual inventory system is the process of keeping inventory records in real-time. The company updates its inventory account as and when it makes new inventory purchases. On the other hand, the periodic system first adds the inventory in the purchases accounts,...