During the past 30 years, a wide variety of new financial instruments have been introduced into the marketplace. In addition to the traditional basic securities of common stock, preferred stock, and bonds, one can now also own convertible bonds, convertible... 

The two types of prior period adjustments are: (1) Correction of an error that was made in a previous year; and (2) Recognition of a tax loss carryforward benefit arising from a purchased subsidiary. How are prior period adjustments handled? Through this... 

Reversing entries are an optional accounting procedure which may prove useful in simplifying record keeping. A reversing entry is a journal entry to “undo” an adjusting entry. Through illustrations presented in this post you will soon see how reversing...