April 2021

Accrual-based accounting is a popular method for big companies, as it uses the double-entry accounting method, which is more accurate and conforms with the generally accepted accounting principles (GAAP). Imagine your small furniture company delivers a full bedroom set worth $6,000 to a client on March 1st, but you set the invoice due date as […]

Investors use BVPS to gauge whether a stock price is undervalued by comparing it to the firm’s market value per share. Book value refers to a firm’s net asset value (NAV) or its total assets minus its total liabilities. For example, Walmart’s January 31, 2012 balance sheet indicates that shareholders’ equity has a value of