Introduction: Have we pondered over dividends? It should be in our best interest that ‘dividends’ are considered a specific portion of the company’s earnings, which caters its net profit and is evaluated through the supervision of top-line management as well as board of directors. Indeed, dividends are ‘profits’ coming in from the business world that … Read more
Introduction: According to accountancy professionals, the ‘common stocks’ represent an ownership in the entity. It is worth mentioning that individuals holding common stocks are supposed to exercise control by finalizing the board of directors and picking up the right corporate policies for their company. Furthermore, common stockholders are not valued to the fullest and wander … Read more
Introduction: It is appropriate to state that ‘preferred stocks’ are more powerful than the common stocks. Since their inception in the world of business, the accounting gurus have confirmed that preferred stockholders are given a higher value in the market along with a bigger claim on company’s earnings as well as its total assets accordingly. … Read more
Introduction: The term ‘asset’ in the business world reflects to something ‘imperative’ and of great value, helping in accelerating income and unraveling other benefits in overall operations of the entities. It should be in our best interest that ‘assets’ are highlighted in a balance sheet either being intangible or tangible in nature. It is a … Read more
Introduction: A ‘Balance Sheet’ is one of the most familiar terms in accountancy, a financial statement incorporating the assets of the company along with their debts and shareholder’s equity recorded for a specific period. Comprised in three segments, a balance sheet indicates the true value of the company in terms of what it owns, owes … Read more
Introduction: An income statement is best classified as a part of ‘financial statement’ emphasizing over the financial performance of the company for a limited accounting period. It is worth mentioning that an ‘income statement’ calculates the financial performance or its sustainability by highlighting how a company handles its bucket full of expenses and revenues through … Read more
Introduction: The term ‘accounting’ represents the art of recording, evaluating and summarizing business transactions in an organized manner which has proven to be significant for big and small enterprises in the world. It should be in our best interest that using the accounting formulations is downright essential, because without accounting, business owners can never enlighten … Read more
What Are Fixed Assets? The world of accounting is full of theories and the notions, there are numerous terms that make up our business and one of them is “Fixed Assets”, which is comprised of the overall long-term assets that are tangible in nature and are owned by the business. Furthermore, there are various organizations … Read more
How Business Administration and Accounting Work? It is appropriate to state that “business administration” and “accounting” are considered equally important in running day-to-day company’s operations in the market. These departments are supporting and reinforcing each other’s presence in the organization. In addition, accountancy helps in cutting up on the expenses and making bankable transactions from … Read more
Introduction: Shareholder equity is a corporate practice that is showcased by investors and professional accountants in the companies to evaluate how an organization manages its investments and controls the amount of money that has been used through lending to understand the organizational valuation in the market. Over the years, finance professionals have understood that shareholder … Read more
What is Inventory Valuation The finance professionals consider Inventory Valuation as the dollar amount linked with all the items associated with the company’s stock. We must solely focus on the amount since it’s considered the cost of the mentioned items. Nevertheless, it is possible that due to some feeble situations or environmental uncertainty, the same … Read more
Introduction: The finance professionals have labeled ‘compensating balance’ as the most minimal amount of balance that needs to be maintained in order to keep the account running. It should be in our best interest that compensating balances are commonly used to overcome the unbalanced portion of the expense that banks might experience when extending the … Read more