A business must possess enough funds to pay current financial obligations at all times to ensure continuity of business operations. Fixed-assets-to-net-worth ratio is an accounting tool that shows you ...

Discover the key differences between fixed and current assets, including their roles in business, how they're recorded, and why they matter for financial strategy.

The fixed-asset turnover ratio measures the amount of sales a business generates for every dollar invested in fixed assets. The ratio equals net sales divided by average net fixed assets. A high fixed ...

A financial statement that lists the assets, liabilities and equity of a company at a specific point in time and is used to calculate the net worth of a business. A basic tenet of double-entry ...

If you operate a factory, you rely on machinery to produce salable goods. If you’re a freight company, your fleet of trucks is the key to making money. Every business has fixed assets that are ...

Fixed assets and depreciable assets are two very closely, interrelated items on a company's balance sheet. Let's define each and describe how they are the same and subtly different. A fixed asset is ...

Fixed asset impairment occurs when asset market value drops below its book value. To detect impairment, compare asset's book value against its recoverable amount. If impaired, reduce book value on ...