Introduction Balance sheet is a very important tool for investors and businesses alike. It is also known as a sheet of financial position because it contains a business’s financial position. It contains everything that is required to evaluate the financial position of a company. It contains every bit of information about the assets that the …
Overview: Accounting entries, which are also more commonly known as simply journal entries, are one of the most important parts of an accountant carrier. The accounting or journal entries play a crucial role in the bookkeeping of every business, a small business or a huge business. Account entries are done by using the double entry …
What are the Accounting entries? (Definition, Example, and Explanation) Read More »
Definition: Accounts payable are the payments that a business owes to its supplier as a result of purchasing a product or service from that supplier. Account payables are noted in the balance sheet of a company as liabilities because they are the obligations that are yet to be cleared. Account payables are normally classified as …
Accounting for Account Payable: Recognition, measurement, Journal Entries, and Example Read More »
A chart of accounts or COA is just like an organizational chart, but with one major difference and that is it shows financial accounts instead of the position of people in an organization. A chart of accounts provides great details of each of the accounts in a company’s balance sheet. It divides and sub-divides assets, …
What Is the Chart of the Accounts? And How Does It Work? Read More »
According to International Standards on Auditing (ISA), the auditor’s responsibility is to design and perform the audit in a way that enables the auditor to obtain sufficient appropriate audit evidence to base his audit opinion on. Audit Evidence refers to accounting, financial records and any other relevant information the auditor gathers during the audit. This …
Non-financial Key Performance Indicators, which are also referred to as the intellectual capital of any company, are an increasing attribute for business drivers. It includes all knowledge, corporate reputation, relationship, information, data, skills, brands, patents, trust, or processes that are at the disposal of businesses. Non-financial KPI refers to other measures that are being used …
What are Non-Financial Key Performance Indicators? (6 Important Indicators Included) Read More »
Breakeven concerns itself with an entity’s margin of safety. The term is used by accounting firms, investment institutes, and companies in general. Financial breakeven differs from accounting breakeven. While accounting breakeven concerns itself with the point at which a company is neither making profit or loss, that is a position where the company’s revenue and …
How is Financial Break-even Calculated? (Formula, Example, and Calculation) Read More »
The term “financial distress” is a common experience many individuals and organizations have gone through. When an individual is going through financial distress, the person cannot generate enough income to cover their expenditure. Financial distress occurs in an organization when the company cannot generate revenue that is sufficient to cater to all financial obligations. There …
What Causes Financial Distress? (Top 6 Reasons You Should Know) Read More »
Equity research is all about producing reports. These reports are targeted towards investors to provide the financial analysis that would enable them to choose what investment to buy, sell, or hold. Equity research is also used to provide timely analysis and quality news, which in most cases is used by financial institutions as a means …
How Do Equity Research Firms Make Money? And Who are They? Read More »
Overview James E. Walter proposed a theory on the dividend policy of a company. It states that a company’s dividend policy depends on the internal rate of return [r] and the cost of capital (k). James Walter offered an interlink between the dividend decision and investment decision of a company. He stated that both decisions …
Walter’s Model on Dividend Policy: Explanation, Formular, Example, And More Read More »
