Financial Accounting

Financial Accounting involve recording financial data and preparing financial statements of entity based on accounting standards or reporting frameworks.

  • Types of Financial Statements
  • Element of Financial Statements
  • Balance Sheet
  • Income Statement
  • Accounting principle
  • Assets
  • Liabilities
  • Retained Earning
  • Trial Balance
  • Financial Statements Analysis
  • And others importance topics related to auditing

What Is the Difference Between Adjusting Entries And Correcting Entries?

The purpose of accounting in any business entity is to properly record the financial transactions, classify them, and present them as useful information in financial statements and analysis. However, the financial statements and analysis can only be useful and fair if the recording and classification process of economic events and transactions has been done accurately. …

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Which Depreciation Method is Most Frequently Used in Businesses Today?

Business entities own different assets that are used for operations and revenue generations. Some assets are consumed within one accounting period, while others last for more than one accounting period. The short-term assets used within one year are not recorded in the company’s balance sheet. Instead, they are recorded as the expense of the company. …

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Accounting for Equity Securities: Explanation, Journal Entry, and Example

Investors include various asset classes as a part of their investment portfolios. They may consist of a mix of equity and debt instruments. On top of that, they may also want to expand their selection beyond the traditional investment options. In that case, they can consider alternative investments. They may consider various factors while building …

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Adjusted Vs. Unadjusted Cost of Goods Sold: What are the differences?

Companies prepare financial statements to report their financial position and performance after every period. This period may differ from one company to another. On top of that, the interval for which they report those activities may also vary. For example, companies can prepare those statements monthly, quarterly or annually. However, they must use the same …

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What is After Tax Operating Income (ATOI) And How to Calculate It

Companies earn revenues from their operations. However, they must also incur expenses to generate sales. The difference between both these represents the profit or income for a company. Another term used to describe this income or earnings is profits. Companies measure these profits at regular intervals to establish the profitability of their operations. In some …

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