Accounting
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Contra Asset Accounts: Definition & Accounting Explained
In bookkeeping, a contra asset account is an asset account in which the natural balance of the account will either be a zero or a credit (negative) balance. The account offsets the balance in the resp
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Contingent Liabilities: Definition, Accounting & Examples
A contingent liability is a potential liability that may or may not occur, depending on the result of an uncertain future event. The relevance of a contingent liability depends on the probability of t
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Consolidation Method Explained: A Comprehensive Guide
The consolidation method is a type of investment accountingInvestment MethodsThis guide and overview of investment methods outlines they main ways investors try to make money and manage risk in capita
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Understanding the Completed Contract Method: Revenue Recognition Explained
The completed contract method of revenue recognitionRevenue RecognitionRevenue recognition is an accounting principle that outlines the specific conditions under which revenue is recognized. In theory
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Commitments vs. Contingencies: Understanding Financial Obligations
In accounting and finance, Commitments and Contingencies can be defined as follows:A commitment is a promise made by a company to external stakeholdersStakeholderIn business, a stakeholder is any indi
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Closing Entries: A Comprehensive Guide for Accounting
A closing entry is a journal entryJournal Entries GuideJournal Entries are the building blocks of accounting, from reporting to auditing journal entries (which consist of Debits and Credits) that is m
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Understanding the Chart of Accounts: A Comprehensive Guide
The chart of accounts is a tool that lists all the financial accounts included in the financial statementsThree Financial StatementsThe three financial statements are the income statement, the balance
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Understanding Cash Flow from Operations: A Comprehensive Guide
Cash flow from operations is the section of a company’s cash flow statementCash Flow StatementA cash flow Statement contains information on how much cash a company generated and used duri
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Understanding Cash Flow from Investing Activities: A Comprehensive Guide
Cash Flow from Investing Activities is the section of a company’s cash flow statementCash Flow StatementA cash flow Statement contains information on how much cash a company generated and
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Understanding Cash Flow from Financing Activities: A Comprehensive Guide
Cash Flow from Financing Activities is the net amount of funding a company generates in a given time period. Finance activities include the issuance and repayment of equityEquityIn finance and account
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Understanding Cash Equivalents: Definition & Examples
Cash includes legal tender, bills, coins, checks received but not deposited, and checking and savings accounts. Cash equivalents are any short-term investment securities with maturity periods of 90 da
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Cash Conversion Cycle (CCC): Definition & Analysis
The Cash Conversion Cycle (CCC) is a metric that shows the amount of time it takes a company to convert its investments in inventoryInventoryInventory is a current asset account found on the balance s
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Understanding Finance: A Comprehensive Overview
In financeFinance OverviewFinance is defined as the providing of funding and management of money for individuals, businesses, and governments. The financial system includes the circulation of money, m
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Carrying Amount: Definition, Calculation & Importance
The carrying amount is the original cost of an asset as reflected in a company’s books or balance sheetBalance SheetThe balance sheet is one of the three fundamental financial statements. The fi
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R&D Capitalization vs. Expensing: A GAAP Guide for Businesses
Under the United States Generally Accepted Accounting Principles (GAAPGAAPGAAP, Generally Accepted Accounting Principles, is a recognized set of rules and procedures that govern corporate accounting a
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Capitalized Costs Explained: Definition & Examples
A capitalized cost is a cost that is incurred from the purchase of a fixed asset that is expected to directly produce an economic benefit beyond one year or a company’s normal operating cycle.&n
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Capital Lease vs. Operating Lease: Key Differences Explained
A capital lease (or finance lease) is treated like an asset on a company’s balance sheet, while an operating lease is an expense that remains off the balance sheet. Think of a capital lease as m
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Capital Expenditures (CAPEX): Definition & Examples
Capital expenditures refer to funds that are used by a company for the purchase, improvement, or maintenance of long-term assetsLong Term AssetsLong term assets are assets that a company uses in its p
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Capital Expenditures (CapEx): Definition & Investment Explained
A capital expenditure (“CapEx” for short) is the payment with either cash or credit to purchase long term physical or fixed assets used in a business’s operations. The expenditureExp
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Calendarization of Financial Statements: Standardization Explained
The process of standardizing the reporting time periods of financial statementsThree Financial StatementsThe three financial statements are the income statement, the balance sheet, and the statem
Accounting
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Natural Indigestion Relief: Home Remedies & Quick FixesCure Indigestion Naturally If you've got an upset stomach there are many natural cures or home remedies you can try. Before you run to the drug store save money by trying some of the step...
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![3 Time Decay Strategies for Options Trading | [Your Brand]](https://www.etffin.com/article/uploadfiles/202109/2021093009190880_S.jpg)
3 Time Decay Strategies for Options Trading | [Your Brand]Got a little time? Interested in options trading strategies that target the passage of time? This article is for you. Option traders know there are two ways for an position to be a winner:When a ...
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Proven Strategies: 8 Steps to Building Wealth and Becoming a MillionaireThere’s nothing mysterious about becoming a millionaire. Most people who reach that milestone didn’t start out rich or win the lottery. They just followed a system—setting real goals, making smart ...
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Investing in Your 20s: A Beginner's Guide to Financial FreedomInvesting in your 20s is one of the best ways to progress towards financial freedom later in life. However, it can be overwhelming for young investors to start investing. Even if you have limited res...