Accounting articles

Hybrid Accounting Method

Hybrid Accounting MethodOne can choose to use either the accrual basis or cash basis of accounting when initially setting up the accounting system for an LLC. Under the accrual basis, revenue is recognized when earned and expenses when incurred.Who u... Read more

Cash reconciliation — AccountingTools

Cash reconciliation — AccountingToolsYou don’t need to wait on the check (especially if it goes through the mail), and you don’t need to go to the trouble of depositing the check. As a bonus, the money might even hit your account a day or two before... Read more

Net carrying amount — AccountingTools

Net carrying amount — AccountingToolsAn Overview of Carrying Value and Fair ValueThe fair value of an asset is usually determined by the market and agreed upon by a willing buyer and seller, and it can fluctuate often. In other words, the carrying va... Read more

Salvage value — AccountingTools

Salvage value — AccountingToolsAlso covered are assets that a company constructs as a separate project and intends to sell or lease, such as a real estate development, a large office building, or a ship. Capitalized costs include certain financing an... Read more

Capital Definition

Capital DefinitionIn this realm, the capital market is where investable capital for non-financial companies is available. Capital markets in corporate finance may also refer to equity funding, excluding debt. Capital markets may trade in other financ... Read more

Capital maintenance — AccountingTools

Capital maintenance — AccountingToolsPhysical Capital MaintenanceThese changes took different forms in different countries, but they combined to pave the way for capitalism. In England peasants were evicted from rural areas so that nobles could use t... Read more

Capital Lease Definition

Capital Lease DefinitionHow a Capital Lease WorksA capital lease is the other type of lease, and unlike an operating lease, a capital lease requires the lessee to bear some of the risks and benefits of owning the asset, even though it never actually... Read more

What is Inventory? Meaning Definition Examples

What is Inventory? Meaning Definition ExamplesInventory to Working Capital ExplanationThe working capital ratio remains an important basic measure of the current relationship between assets and liabilities. To calculate the working capital, compare a... Read more

How to Sell Preferred Stock

How to Sell Preferred StockPreferred stockholders enjoy a fixed dividend that, while not absolutely guaranteed, is nonetheless considered essentially an obligation the company must pay. Preferred stockholders must be paid their due dividends before t... Read more