Category: Bookkeeping

Investments with higher cash flows toward the end of their lives will have greater discounting. A technology firm decides to invest $2 million in the development of a new software product. The firm expects cash inflows of $700,000 per year for the next four years from the sale of this software. Real Function Calculators As […]

Dividends, which are a distribution of a company’s equity to the shareholders, are deducted from net income because the dividend reduces the amount of equity left in the company. Retained earnings are a portion of a company’s profit that is held or retained from net income at the end of a reporting period and saved for future […]