Control accounts are essentially summary accounts in the general ledger. They contain totals instead of amounts relating to individual debtors or creditors. They allow one to see the totals, without getting into too much details from individual accounts. This software ensures the general ledger will sort all transactions through the proper accounts to create accurate financial Read more about What is a Ledger in Accounting? Is There a Difference with a Journal and a Ledger?[…]

First, it ignores the time value of money, which is a critical component of capital budgeting. For example, three projects can have the same payback period with varying break-even points due to the varying flows of cash each project generates. Whilst the time value of money can be rectified by applying a weighted average cost Read more about How to calculate the payback period[…]