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
Every company needs long-term growth and development but raising funds in the initial days is the biggest challenge for a
By examining financial statements including the balance sheet and income statement, ratio analysis is a quantitative approach to acquiring insight
When it comes to raising money through shareholding, companies have the option to issue different types and forms of shares.
Ratio analysis can provide insight into companies performance by comparing its performance and financial health over time. At the same
Long-term investment decisions are made through capital budgeting. It is most certainly a company’s most important financial decision and it
Table of Contents The goodwill of any company is considered an intangible asset. Business goodwill is connected with business acquisitions,
Amortization is writing down the loan’s value and intangible assets like goodwill, trademark, copyright, etc. It is similar to depreciation,
In general, businesses or clients open a current account with a bank, conduct transactions, and record them in a bank
It’s crucial to look at how companies use depreciation, which can account for a large number of a company’s owners
A cash book is a particular type of book that is only concerned with the recording of transactions of an
Cash basis accounting is fundamental to the accounting process which recorded the total revenue when cash is received. Cash accounting
One of the critical responsibilities of business owners and accountants is selecting an accounting technique to record transactions. Accrual-based accounting
The accounting equation is the most important part of the accounting process. The dual accounting technique is used in
The post-closing trial balance is the ninth (and last) step of the accounting cycle. It can be prepared before the new
Closing journal entries are an essential component of the accounting cycle in which balances from temporary accounts are transferred to
Financial statements are very essential while making several business decisions. Business owners, managers, and other stakeholders use financial statements to