The classified balance sheet uses sub-categories or classifications to further break down asset, liability, and equity categories. For example, in the balance sheet above, equipment and fixtures are listed together under assets in the amount of $17,... Read more
Help support Wordnik (and make this page ad-free) by adopting the word burden. To encumber with a burden (in any of the noun senses of the word). These are words often used in combination with burden.... Read more
There are several types of accounting certifications that accountants obtain to expand their skill sets and gain positions within larger organizations. In addition to CPA credentials, other common accounting designations are chartered financial anal... Read more
In accounting, the par value allows the company to put a de minimis value for the stock on the company's financial statement. Par value is also used to calculate legal capital or share capital. Par is said to be short for "parity," which refers to t... Read more
Mortgage interest rates typically follow the yield of the 10-year U.S. Bonds are a form of raising capital for government entities and corporates alike, often for meeting liquidity needs and/or funding day-to-day operations. SmartAsset Advisors, LLC... Read more
This type of argument is quite common in a naturalistic fallacy and avoiding it requires that someone first argue whether something “natural” is inherently good. Many of the issues that arise when someone utilizes a naturalistic fallacy... Read more
Bearer bonds are still legally traded in the U.S., but regulatory and law enforcement agencies keep a close eye on issuances and transfers of these instruments to curb illegal activity. To facilitate the oversight, financial institutions must adhere... Read more
If this balance sheet were from a US company, it would adhere to Generally Accepted Accounting Principles (GAAP), and the order of accounts would be reversed (most liquid to least liquid). Owners’ equity, also known as shareholders' equity, ty... Read more
Consequently, outstanding receivables are minimized, lowering the risk of bad debt and improving the financial health of the business. A buyer-initiated early payment program is managed through accounts payable with either the dynamic discounting me... Read more
This requires first subtracting the COGS from a company's net sales or its gross revenues minus returns, allowances, and discounts. This figure is then divided by net sales, to calculate the gross profit margin in percentage terms. Gross profit is a... Read more
