Income statements provide a summary of the performance of a company during a specific accounting period and are useful for various stakeholders like management, investors, lenders, and creditors. Following operating expenses are other forms of income, known as income from continuing operations. This includes operating income, other net income, …
Generally speaking, assets are a good thing to have, and liabilities less so. An asset can be anything that provides a current or potential future economic benefit to whoever possesses or controls that asset. Simply put, an asset is something of value that you own or that is owed to you. If you lend money […]
The difference between these certifications is primarily the legal status and the types of services provided, although individuals may earn more than one certification. Additionally, much accounting work is performed by uncertified individuals, who may be working under the supervision of a certified accountant. As noted above, the majority of …
It can get broken into two different categories, accrued revenues and accrued expenses. Just imagine how hard it would be for investors, analysts, and accountants to understand financial statements if each company just followed the most convenient way to record transactions. One may think that accrued expenses are somewhat similar to accounts …
They can be paid with an allowed delay that can vary between 30, 60, or 90 days. Vouchers that companies use in accounting provide the information needed to pay liabilities, primarily those to vendors. Vouchers in different terminology are redeemable for government programs as well as for benefits provided to customers from businesses. …
It can be a retail store, such as the Gap that sells clothing, or, it can also be a retailer like the now-defunct Radio Shack that sold electronic components, acting as a specialty vendor for the end consumer. Big retailers often source products from multiple different vendors. The business then uses the raw materials in […]