Times Interest Earned Ratio Analysis Formula Example

It is a measure of a company’s ability to meet its debt obligations based on its current income. The formula for a company’s TIE number is earnings before interest and taxes (EBIT) divided by the total interest payable on bonds and other debt. The result is a number that shows how many times a company […]

What’s a tax deduction? What’s a tax write-off?

Itemized deductions let you cut your taxable income by taking any of the hundreds of available tax deductions you qualify for. This earned income tax credit (EITC) is a refundable tax break for low-income tax write off meaning taxpayers with and without children. For 2023 (taxes filed in 2024), the credit ranges from $600 to […]

ALLOCATE definition in the Cambridge English Dictionary

Team members go on vacation, a client might be delayed in getting back to you, or your business goals might change. If you’ve never created a resource allocation plan before, this article is for you. Then, get a preview of common resource allocation challenges and what you can do to get ahead of them. Employing […]

Straight Line Basis Calculation Explained, With Example

A company may elect to use one depreciation method over another in order to gain tax or cash flow advantages. With the double-declining balance method, higher depreciation is posted at the beginning of the useful life of temporary accounts the asset, with lower depreciation expenses coming later. This method is an accelerated depreciation method because […]

Process costing system definition

Educational institutions can break down the education process into individual steps, such as teaching, administration, and facilities, and assign costs to each step to calculate the cost of providing education. Process costing is particularly useful for large-scale production, where the cost of production per unit is critical. Process costing can help manufacturers identify areas to […]