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What do companies do with deferred revenue?

The deferred, or unearned, revenue is recorded as a liability on a company’s balance sheet until the goods or services are delivered, after which the mone...

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Knowledge Base

Latest insights and tutorials from the The Daily Horizon team.

How do you make Excel say yes or no?

In the “Data Validation” section, click “Data Validation.” Then, click the “Settings” tab. In the “Allow” drop-down menu, select “List.” Under “Source,” t...

What is the formula of invested capital?

Invested Capital Formula = Total Debt (Including Capital lease) + Total Equity & Equivalent Equity Investments + Non-Operating Cash read more shall be...

Why is interest expense added back to net income when calculating the rate of return on total assets?

Total assets Interest expense relates to financed assets, and it is added back to net income since how the assets are paid for should be irrelevant. This ...

Is carriage outwards debit or credit in profit and loss account?

Debit/Credit Side: The entries about the freight inwards are posted on the debit side of the trading account, whereas the entries about the carriage outwa...

What is incremental cash flow?

Essentially, incremental cash flow refers to cash flow that a company acquires when it takes on a new project. If you have a positive incremental cash flo...

Which credit line is most important?

The FICO 8 model is known for being more critical of high balances on revolving credit lines. Since revolving credit is less of a factor when it comes to ...

What are factors that can result in increased costs and production delays in the systems?

66A Factors such as changing design requirements, late design release, lack of production planning, and unstable funding can result in increased costs and...

What are 3 things auditors do when they audit a company?

During an audit, the assigned auditor will observe, take notes, review documents and interview employees. Auditors will often ask questions and test emplo...

What is the maximum Social Security benefit at age 71?

What is the maximum Social Security benefit? En español | The most an individual who files a claim for Social Security retirement benefits in 2021 can rec...