In addition, liabilities impact the company’s liquidity and, in the case of debt, capital structure. When the corporation purchases shares of its stock, the corporation’s cash declines, and the amount of stockholders’ equity declines
Net income also includes any other types of income that a company earns, such as interest income from investments or income received from the sale of an asset. Lenders and financial institutions use
A t-account is a visual representation of a financial account for a financial accounting period. Debits (abbreviated Dr.) always go on the left side of the T, and credits (abbreviated Cr.) always go
Good bookkeeping practices are essential for a business to succeed, especially when it comes to the tax-paying season. One way to think about it is that bookkeepers lay the groundwork for accountants to
Exposure to individual counterparties, groups of counterparties or customer risk segments is controlled through a tiered hierarchy of credit authority delegations and risk-based credit limit guidances per client group for larger exposures. After
Adam received his master’s in economics from The New School for Social Research and his Ph.D. from the University of Wisconsin-Madison in sociology. He is a CFA charterholder as well as holding FINRA
Outsourcing is an umbrella term that refers to one company hiring another company to perform some work. Offshoring is a specific type of outsourcing, in which the company that gets hired to do
Financial statement analysis evaluates a company’s performance or value through a company’s balance sheet, income statement, or statement of cash flows. By using a number of techniques, such as horizontal, vertical, or ratio
Here are a few examples of common journal entries made during the course of business. If you’re unsure when to debit and when to credit an account, check out our t-chart below. With
It also includes all cash outflows that pay for business activities and investments during a given period. Since the income statement and balance sheet are based on accrual accounting, those financials don’t directly