A balance sheet is a financial statement that reports a company’s assets, liabilities and shareholders’ equity at a specific point in time, and provides a basis for computing rates of return and evaluating its capital structure. It is a financial …
Bad debt is an expense that a business incurs once the repayment of credit previously extended to a customer is estimated to be uncollectible. Bad debt is a contingency that must be accounted for by all businesses who extend credit to …
Authorized share capital is the number of stock units (shares) that a company can issue as stated in its memorandum of association or its articles of incorporation. Authorized share capital is often not fully used by management in order to …
An assets is anything of value or a resource of value that can be converted into cash. Individuals, companies, and governments own assets. For a company, an asset might generate revenue, or a company might benefit in some way from …
An appropriation account shows how an organization’s funds are distributed among partners, shareholders, and departments. For companies, an appropriation account shows how the company’s profits are divided and retained. For partnership, it shows how profits are distributed among the partners. …
Depreciation, depletion, and amortization (DD&A) is an accounting techniques that enables companies to gradually expense various different resources of economic value over time in order to match costs to revenues. Depreciation spreads out the cost of a tangible assets over …
An annual report is a document that public corporations must provide annually to shareholders that describes their operations and financial conditions. The front part of the report often contains an impressive combination of graphics, photos, and an accompanying narrative, all …
Accruals are revenues earned or expenses incurred which impact a company’s net income on the income statement, although cash related to the transaction has not yet changed hands. Accruals also affect the balance sheet, as they involve non-cash assets and …
Acceptance Contractual agreement instigated when the drawee of a time draft “accepts” the draft by writing the word “accepted” thereon.  The drawee assumes responsibility as the acceptor and for payment at maturity. An acceptance is a contractual agreement by an importer to pay the amount due for receiving goods at a specified date in the future. Documents are presented …
Accounting policies are the specific principles and procedures implemented by a company’s management team that are used to prepare its financial statements. These include any accounting methods, measurement systems, and procedures for presenting disclosures. Accounting policies differ from accounting principles …