Corporations whose stock is traded on stock exchanges. Also referred to as publicly-traded corporations.
Corporations whose stock is traded on stock exchanges. Also referred to as publicly-traded corporations.
What is the difference between public companies and public sector? Author: Harold Averkamp, CPA, MBA Definition of Public Companies Public companies are those businesses owned by individuals (and not by a government)....
An organization established by the U.S.’s Sarbanes-Oxley Act to oversee the auditors of corporations whose stock is publicly-traded. The PCAOB’s board members are appointed by the Securities and Exchange...
? What is the difference between paid-in capital and retained earnings? What is the cost of capital? What is the difference between dividends and interest expense? What is the difference between par and no par value...
A designation awarded by one of 50 U.S. states or five jurisdictions to a college graduate who has passed the rigorous Uniform CPA Exam and has met the required work experience. See Accounting Careers.
What is public accounting? Author: Harold Averkamp, CPA, MBA Definition of Public Accounting Public accounting can be viewed as firms of accountants that serve clients such as businesses (retailers, manufacturers,...
of accounting including the following: Public accounting as a sole practitioner or as a member of small to international CPA firms working as an auditor, tax consultant, general consultant, etc. Manufacturing companies,...
Is it acceptable for companies to use two methods of depreciation? Author: Harold Averkamp, CPA, MBA Definition of Depreciation Methods There are various methods of depreciating assets that are used in a business. It is...
What is the difference between public sector and private sector? Author: Harold Averkamp, CPA, MBA Definition of Public Sector Public sector refers to: government-owned organizations, and government-provided services...
Financial statements that reflect the total economic entity. For example, on a consolidated income statement a corporation having several subsidiaries would report the total of all of its companies’ sales that were...
This is a national organization of certified public accountants. For more information go to www.aicpa.org.
A publication by the U.S. Internal Revenue Service (IRS) to assist employers with federal payroll taxes. The complete title of the publication is Publication 15 (Circular E), Employer’s Tax Guide. It is available...
A publication by the U.S. Internal Revenue Service (IRS) to assist employers with federal payroll taxes. The complete title of the publication is Publication 15 (Circular E), Employer’s Tax Guide. It is available...
The term that refers to the stock of a corporation which is traded on the stock exchanges (as opposed to stock that is privately held among a few individuals).
Why do companies use cost flow assumptions to cost their inventories? Author: Harold Averkamp, CPA, MBA Cost flow assumptions are necessary because of inflation and the changing costs experienced by companies. If costs...
statements report the fair market value of a company. True Wrong. False Right! 3. Large corporations must follow the __________ accrual basis of accounting. 4. Corporations whose stock is publicly traded must have their...
of the company’s management, and 2) have not been reviewed or audited and therefore the accountant does not offer an opinion or any assurances on the financial statements. Compilations allow companies without an...
What is an outside accountant? Author: Harold Averkamp, CPA, MBA A company’s outside accountant is an accountant who is not an employee of the company. An outside accountant could be a sole practitioner or a member of...
A business organization different from a sole proprietorship, partnership, and corporation. As the name implies it provides the limited liability protection usually associated with a corporation. To learn more about this...
The amount of owner’s equity or stockholders’ equity reported on a company’s balance sheet. This is not an indication of the company’s fair market value.
An asset account which reports the carrying amount of a company’s investment in another enterprise.
How do you record a deposit on utilities? Author: Harold Averkamp, CPA, MBA Definition of Deposit on Utilities A new customer of a public utility (electricity, natural gas, telephone, etc.) may be required to pay a...
, payment of bills, and more. After the recording of the transactions, an accountant or the business owner will review the bookkeeper’s work and make the required adjusting entries before the company’s financial...
commitment must also be disclosed to the readers of the balance sheet. However, if none of the coal has been delivered as of the balance sheet date, the utility company will not report a liability amount. Companies will...
How can I determine the inventory methods used by other companies in my industry? Author: Harold Averkamp, CPA, MBA Definition of Inventory Methods Inventory methods refers to the order or manner in which a company moves...
, the controller will be responsible for the company’s: Financial statements General ledger Cost accounting Payroll Accounts payable Accounts receivable Budgeting Special analyses as well as other duties At larger...
See Public Company Accounting Oversight Board (PCAOB).
What is Big 4 Accounting? Author: Harold Averkamp, CPA, MBA In accounting, the Big 4 refers to the four largest public accounting and auditing firms: Deloitte PricewaterhouseCoopers (PwC Ernst & Young (EY) KPMG These...
Accounting Careers Author: Harold Averkamp, CPA, MBA 24 Q&A Popular Recent What is the difference between financial accounting and management accounting? What is public accounting? What does an accountant do? What is...
financial statements report the financial results of the entire group’s transactions with people and companies outside of the group. Most of the financial statements of large corporations with shares of stock trading...
What if a company's Allowance for Doubtful Accounts is understated? Author: Harold Averkamp, CPA, MBA Definition of Allowance for Doubtful Accounts The Allowance for Doubtful Accounts is a contra asset account. The...
, are noted as simply timing differences. Since most companies use the double-entry system of accounting, any omission or error in the company’s general ledger Cash account also means that at least one other general...
What is synergy? Author: Harold Averkamp, CPA, MBA In business the term synergy is often associated with the merger or acquisition of companies. Synergy implies that the outcomes resulting from the merger of two...
by manufacturers, retailers, financial institutions, public utilities, government agencies, accounting firms, hospitals, etc. Qualifications Needed An accountant will have a college degree with a major in accounting....
The interest on bonds is deductible for income tax purposes Bondholders are not owners and therefore the ownership interest of the existing stockholders will not be diluted Example of Bonds Payable Usually public...
31) and the calendar quarter (January 1 through March 31, April 1 through June 30, July 1 through September 30, October 1 through December 31). It is common for these companies to also have monthly accounting periods....
Why is interest expense a nonoperating expense? Author: Harold Averkamp, CPA, MBA Definition of Interest Expense as a Nonoperating Expense Interest expense is the cost of borrowing money. For most companies the borrowing...
of products sold, or cost of revenue to describe the amount that it is subtracting from its sales revenue to report the amount of its gross profit or gross margin. Companies that provide services will use the term cost...
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