Tag: Accounting basics

The dividend is a part of the company’s financial plan/statement that is usually announced at the annual and quarter year. The main

After reading an article about methods of raising funds i.e debt and equity financing, john found two methods (shares and debentures)

John wants to start a new business. He needs $600,000 to convert his idea into a business. Unfortunately, he has

There are two types of techniques for accounting for financial transactions. The Traditional Approach and the Modern Approach are two different approaches.

A single-entry system (also known as a cash basis accounting) involves recording transactions when the money is paid instead of when

The Break-even point in accounting is a crucial element in many businesses’ financial planning and budgeting activities. Although it is also known

Contra accounts help determine a company’s historical cost; these accounts assist financial managers, and accountants in maintaining clean and easy-to-track

If we talk about Inventory, it goes through many stages before it gets to the customers, from purchasing raw materials

Marketable securities are financial liquid tools that can be converted or sold into cash within a year of investment. However,

The operating cycle is a great way to measure the company’s efficiency to determine how smoothly operations are running and

Do you know? Businesses incur many kinds of expenses during their operations, but noncash expenses are one of the common

Companies raise funds from different sources like issuing shares, borrowing from financial institutions, retained earnings, etc. Another main source of

Do you know? Businesses use different methods to maintain good financial health. Most use income statements cash flow statements, balance