Accounting
-
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
-
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
-
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
-
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
-
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
-
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
-
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
-
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
-
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
-
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
-
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
-
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
-
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
-
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
-
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
-
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
-
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
-
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
-
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
-
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
- Understanding Rent Expense: Definition & Significance
- Customer Profitability Analysis: Understanding & Calculating
- Half-Year Convention for Depreciation: Understanding the Rules
- Top 5 Bookkeeping Software Solutions for Small Businesses - 2024
- Understanding the Times Interest Earned Ratio for Business Health
- Protecting Client Data: Cybersecurity for Accountants in the Digital Age
-
Navigating Market Dips: A Key Trading Indicator for Confident BuyingWhen an asset enters a bear phase and the headlines are negative, analysts project further downside, and the sentiment shifts from optimism to pure gloom and doom. This results in panic gripped trader...
-
Stimulus Check Delays: Millions Still Awaiting IRS PaymentsAn IRS backlog could mean millions o...
-
Quitting Your Job with Wage Garnishment: What Are Your Rights?What Happens When You Quit Your Job & You Have Wage Garnishments? Wage garnishment is a court or administrative order that requires an employer to withhold a percentage of your wages to r...
-
Arizona Unemployment Benefits: Understanding 53-Week EligibilityArizona may allow you to collect unemployment benefits for a total of 53 weeks. The state of Arizona allows up to 20 weeks of Unemployment Insurance (UI) benefits to an individual. During the...