Companies use various strategies to increase their sales. Usually, these strategies involve marketing and sale tactics that can help grow revenues. In some cases, these may also include providing discounts to customers. One such technique most companies benefit from is providing credit terms to customers. This way, companies can offer their products and services to …
A company’s financial statements allow its stakeholders to understand its operations better. In most cases, these will include the balance sheet, the income statement, the statement of cash flows, and the statement of retained earnings. Along with these financial statements, companies will also include notes to the financial statements. These notes include information about the …
How to Read and Analyze Balance Sheet of a Company? Read More »
Accounts receivable is an account in the balance sheet that represents the amount owed by customers to a company. This account holds all the receivable balances which may come from various customers. For most companies, this account also represents the total credit sales made by a customer with pending payments. Any company that offers a …
Accounting for Written Off Bad Debts: Definition, Example, and Journal Entries Read More »
When investing in securities, investors may come across various terms that are relevant to the process. Some of these terms relate to the value of the underlying product in which they invest. Usually, they include face value, market value, par value, and several other terms. For most investors, these terms can be highly crucial in …
Par Value Vs Market Value: What Are the Differences? Read More »
The information presented in a company’s financial statements can provide significant insights into its operations. For stakeholders, particularly shareholders and investors, this information can be significantly crucial. Of these financial statements, most stakeholders focus on the balance sheet, income statement, and cash flow statement. Sometimes, however, the information presented in these statements may not be …
When investors purchase an asset, its value is the cost that they pay for it. However, this cost may not be the same as the amount that the market deems for its worth. On top of that, the issuer of the asset may also put a price over it. This price may not match the …
Stated value Vs. Agreed value: What are the differences? Read More »
The share price of a company’s stock may differ based on various factors. Usually, market participants and forces decide how much this stock is worth. However, some internal factors may also play a role in establishing the price that shareholders will pay for it. When companies issue shares to the general public, they can decide …
Par Value of Shares: What Is It and How to Set It Read More »
Investors can invest their resources in various financial instruments. Usually, these prefer to have share and debt instrument investments. Each of these instruments may come with unique features which differentiate them from the others. On top of those features, they may also come with various terms, which differ based on context. One such area where …
Companies issue shares to their shareholders and gets finance in exchange. This finance becomes a part of a company’s equity. Through this equity, companies can run their operations and fund various operations. Usually, shares do not stay with the same holder and may change hands several times. These shares remain in the financial statements and …
Accounting for Issuance of Treasury Stock: Example, Journal Entries and More Read More »
Most companies have limited sources of finance. Usually, these include equity and debt. Of these, the former comes from a company’s shareholders. In exchange for these instruments, the company issues shares, which provide the holder with several rights. These rights include receiving dividends and voting rights. The latter source of finance comes from third parties, …
Accounting for Issuance of Common Stock: Example, Journal Entries, and More Read More »
