Category Archives: Accounting

The Accounting Cycle

The Accounting Cycle is a series of steps that businesses take to track transactions and consolidate financial information over a specific accounting period (month, quarter, year). The end result of is the production of accurate financial statements for that period and preparedness for the next accounting period. Read this article for more information.

Cost Accounting

One area of accounting is cost accounting, which focuses on internal reporting for the purpose of improving managerial decision making. This article includes a description of cost allocation, cost-volume-profit and the role of a double break-even!

Creating Financial Statements

A company’s financial statements give investors, managers, and other “users” a complete, honest look at its financial health. Finished financial statements follow a standardized format, letting investors compare different companies in the same industry apples-to-apples. Click here to learn about the components of a company’s financial statements.

Managerial Accounting

This article contains everything you need to know about Managerial accounting. It is one of the two major definitions of accounting, and focuses heavily on the management decisions that are made in regards to the companies financial decisions.

The Love of Money: Audits and Fraud

Greed most commonly manifests as financial fraud in businesses, driven by individuals looking to enrich themselves and their companies by ANY means. A perfect example of this greed, and the topic of this article, is the case of fraud at LocatePlus Holdings Corporation.

Corporate Debt

Do you ever wonder how companies have the money to build new stores, develop new products, or perhaps even buy another company? Usually companies do not keep enough cash for these transactions sitting in their bank account – it needs to be raised from outside investors. This process creates corporate date, which is explained in great detail here.

Ownership and Dividends

Owning a share in a company means that you are an integral part of the puzzle that helps the company tick. Typically, investors choose to own a stock for one of two profit driven reasons: the dividends they will receive from the company, or the hope that the stock price will increase and they will be able to sell it for a higher price than they purchased it at. Read this article for information on these two reasons investors purchase stocks!

Issuance of Stocks and Paying Dividends

Big corporations are very powerful entities that can possess more capital than some countries in the world. However, every company begins as a small start-up business. Once a private company grows large enough, they can become public, meaning they sell stocks to the public to finance future endeavors. After selling stocks to the public, the company will have to pay dividends to those who have chosen to invest in them. Read this article for more information about this process.

What is Solvency?

Solvency is the possession of assets in excess of liabilities, or more simply put, the ability for one to pay their debts. This article contains information about how to measure solvency, how to understand it based on financial statements, and more!

Cash Planning

A cash budget is used internally by management to estimate cash inflows (receipts) and outflows (disbursements) of cash during a period and the cash balance at the end of a period. In other words, a cash budget is a plan for an organization to obtain and use resources over a specific period of time. Click here to read more!