A document filed when a corporation is formed. Among other things, it lists the number of shares of stock that the corporation is authorized to issue.
A document filed when a corporation is formed. Among other things, it lists the number of shares of stock that the corporation is authorized to issue.
The number of shares of stock that a corporation may issue. The amount is specified in the corporation’s articles of incorporation.
Our Explanation of Stockholders' Equity covers the unique terminology for a corporation's paid-in capital, retained earnings, treasury stock, and accumulated other comprehensive income. Included are cash dividends, stock...
What is par value? Author: Harold Averkamp, CPA, MBA Definition of Par Value Par value is a per share amount that will appear on some stock certificates and in the corporation’s articles of incorporation. (Some states...
approves is the __________ articles of incorporation. 2. One of the advantages of the corporation form of business as opposed to a partnership form is the ease of transferring __________ ownership. 3. At a corporation,...
Our Explanation of Improving Profits will assist you in focusing on the costs and revenues that are relevant (and ignoring those which are not relevant) for improving profits and eliminating losses. Examples of the...
See sales.
One of the steps in effective internal control. An example of separation of duties is to have the money handling be performed by someone who does not update the records. This means that the money counters at a church...
Cash received. Receipts are different from revenues.
An expense account which is expected to have a credit balance instead of the typical debit balance.
Manufactured products that are often expressed in units, machine hours, etc.
turnover ratio as an example. During our review of several books and articles we found the inventory turnover ratio in a variety of ratio classifications including liquidity, solvency, activity, asset management, asset...
Merchandise that was returned to the seller by a customer. This account is a contra sales account. When merchandise sold on credit is returned, this account is debited and Accounts Receivable is credited.
The expensing of an intangible asset from the balance sheet to the income statement.
The accounting or bookkeeping system that does not utilize computer software for entering transactions into journals and ledgers.
A current asset account which includes currency, coins, checking accounts, and undeposited checks received from customers. The amounts must be unrestricted. (Restricted cash should be recorded in a different account.)
Often this account appears as a line in the retained earnings section of stockholders’ equity (balance sheet) and will show the year-to-date net income. The reason is that some accounting software will not put the...
An adjunct account is a valuation account that increases the book value or carrying value of a liability account. For example, the account Unamortized Premium on Bonds Payable (or simply Bond Premium) is an adjunct...
A long-term asset account that reports a company’s cost of automobiles, trucks, etc. The account is reported under the balance sheet classification property, plant, and equipment. Vehicles are depreciated over...
with the information. Not only is it more interesting, but it truly aids in learning. As a trained educator, I greatly appreciated the incorporation of various learning implements to deepen understanding. I believe I...
that the website offers to engage with the information. Not only is it more interesting, but it truly aids in learning. As a trained educator, I greatly appreciated the incorporation of various learning implements to...
, but it truly aids in learning. As a trained educator, I greatly appreciated the incorporation of various learning implements to deepen understanding. I believe I have developed a much stronger understanding of...
reading about it. And it absolutely did. I liked the various ways that the website offers to engage with the information. Not only is it more interesting, but it truly aids in learning. As a trained educator, I greatly...
Our Explanation of Stockholders' Equity covers the unique terminology for a corporation's paid-in capital, retained earnings, treasury stock, and accumulated other comprehensive income. Included are cash dividends, stock...
Since our Explanation of Cash Flow Statement illustrates how the amounts are determined, you will get a better understanding of this very important financial statement. No longer will you look at only the income...
liked the various ways that the website offers to engage with the information. Not only is it more interesting, but it truly aids in learning. As a trained educator, I greatly appreciated the incorporation of various...
Our Explanation of Present Value of an Ordinary Annuity uses the appropriate present value factors for discounting a stream of equal cash amounts occurring at equal time intervals. An important feature is the use of loan...
Our Explanation of the Balance Sheet provides you with a basic understanding of a corporation's balance sheet (or statement of financial position). You will gain insights regarding the assets, liabilities, and...
The depreciation method based on the number of units produced by the asset rather than on the passage of time. This method is also referred to as the units of activity method because depreciation is based on some...
See units of production method of depreciation.
Used to calculate the earnings per share of common stock: Earnings available for common stock divided by the weighted-average number of shares of common stock outstanding. The weighted-average number of shares is needed...
A form of accelerated depreciation which means that in the early years of an asset’s life there is more depreciation expense than under the straight-line method. However, in the later years of the asset’s...
Why can a retailer record its purchase of merchandise as a debit to purchases within the cost of goods sold, instead of the asset inventory? Author: Harold Averkamp, CPA, MBA Before we explain why companies will record...
What is the advantage of issuing bonds instead of stock? Author: Harold Averkamp, CPA, MBA Definition of Bonds Bonds payable are a form of long-term debt, which include a formal agreement to pay interest semiannually and...
How do I compute the units of production method of depreciation? Author: Harold Averkamp, CPA, MBA Definition of Units of Production Depreciation The units of production method of depreciation (which is also referred to...
Why isn't the direct write off method of uncollectible accounts receivable the preferred method? Author: Harold Averkamp, CPA, MBA Definition of Direct Write Off Method Under the direct write off method of accounting for...
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