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Financial statement reporting under Regulation S-X is a very important regulation for a publicly held company; the Securities and Exchange Commission (SEC) uses this regulation as...
Once, when browsing the internet—in the aim of getting various example of balance sheet formats, I was surprised by a website (eghh I forgot the name...
In the past, financial statements’ users rarely judged prospect of businesses based on balance sheet where investors put more weight on the short-run maximization of earnings...
If read a balance sheet, you will find an item under the current asset group named “Short-term Investments”. Short-term Investments and Marketable Securities are generic terms...
Knowing the linkage of numbers in a financial statements set is vital to anyone who attempts to understand the content of financial statements and accounting in...
In the business world (even governments), balance sheet utilization is often mismanaged. Some of the problems faced by executives in the pursuit of financial gain and...
Almost all businesses need substantial amounts of assets to make sales and to carry on operations. The total assets of most businesses are a third, a...
A company’s financial statements are invaluable for investors. Using the financial statements alone you can determine the health of the company and make educated predictions about...
If a company files for bankruptcy, there is a strong likelihood that its creditors will not be paid in full. Upon such a filing, the “best...
Many industries are characterized by high seasonality. A seasonal business is one in which the majority of its sales occurs during a short period each year,...
All developed countries have some form of income tax system that calls for companies to pay to the government a certain portion of their earnings, as...
Balance sheets (also known as statements of financial position) present information about assets, liabilities, and owner’s equity (depending on the type of reporting enterprise, this is...
The objective of financial statements is to provide information for economic decisions. A complete set of financial statements comprises a balance sheet, income statement, statement of...
Your business sells products both at retail to consumers and to other businesses. You extend short-term credit to your business customers. Over the years, you have...
The balance sheet date is the pivotal date at which the financial position of an entity is determined and reported. Thus, events that occur up to...
Most business publish three financial statements, usually annually but sometimes more frequently. These are the profit and loss account (income statement), the balance sheet and the...
There are several tools used to conduct financial analysis. One is a database of accounting information, in which an analyst can roam for days, tracking down...
Businesses keep two types of account; Real Accounts and Nominal Accounts. What is Real Account? What is Nominal Account? The following explanations may deliver easier understanding for you....