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 »
Investors can invest in various securities and instruments in the market. Usually, they prefer shares and other similar instruments as they provide higher returns. These instruments come with two types of earnings, including dividends and capital gains. However, they also come with higher risks compared to other forms of investments. Some investors may not be …
Risk is a crucial factor when making decisions about investments for investors. Usually, these risks dictate the loss that these investors will make on their assets. These risks also relate to specific situations or circumstances. For some investments, they will be high, while for others, these may be lower. Ultimately, the investor must decide how …
Accounting for Issuance of Warrants: Definition, Journal Entries, and More Read More »
The bank capital is the sum of resources a bank can use against insolvency risks. Its assets include share capital, retained earnings, and loans issued. The bank capital to asset ratio is an important measure to understand the financial stability of the bank. Let us discuss what is the bank capital to asset ratio, how …
How to Calculate the Bank Capital to Asset Ratio? Read More »
Capital assets are any significant investments held by an individual or a business. As long as these assets are held by the owners, they are not subject to any taxes. Capital assets owe taxes with capital gains. The tax rates are significantly lower than ordinary income tax rates. However, taxpayers must be mindful of certain …
Are Capital Assets Subject to Tax? Ultimate Guide Read More »
The accounting treatment for the issuance of new shares depends on the market value and the form of consideration received. Commonly, companies issue new common stocks to raise additional capital from the market. Companies without a trading stock value can also issue new shares to specific investors. Let us discuss the accounting treatment of issuance …
Accounting for Issuance of New Shares: Ultimate Guide Read More »
In a common notion, a bank account title represents the account owners of a bank account. However, in many cases, the legal owners and the bank account title can be different. A bank account title has several uses and it is important for the account holders. It has several legal and compliance uses as well. …
Office supplies are items that a business uses in routine tasks. Usually, businesses account for supplies as expenses. However, a business can also record them as assets. A business can categorize office supplies, expenses, and equipment accordingly. The accounting treatment for them will also differ. Let us discuss the accounting treatment and asset classification of …
