Stockholder's Equity

Stockholder’s equity comprises the third portion of the balance sheet, in addition to assets and liabilities. It reveals the amount invested into the company by the shareholders.  It is the amount of capital received from investors in exchange for stock. …

Stockholder’s Equity

Stockholder’s equity comprises the third portion of the balance sheet, in addition to assets and liabilities. It reveals the amount invested into the company by the shareholders.  It is the amount of capital received from investors in exchange for stock. …

The Essential Balance Sheet

Although the balance sheet is a very basic financial statement, it provides an essential glimpse of the company’s well-being. It offers a quick picture of the company’s financial condition at a specific point in time. The company’s condition is determined …

Preparing for the Position of Controller

Controllers play a key role in the function of a company. They provide the tools needed to steer the business towards financial success. Although a large part of a controllers job involves basic accounting, the controller is occupied with management …

Measuring Financial Accounting Transactions

There are four broad concepts that assist accountants in measuring, recording, and reporting financial accounting transactions. Four Basic Accounting Principles 1. Historical Cost Principle: This is the original monetary value of an asset and liability. For an asset, it is …

Bill Collection

Bill collection is one of the least desirable areas of accounting. It can be mundane and emotionally draining. Often, it is postponed until it becomes unavoidable. However, bill collection isn’t merely a final effort to collect payment from accounts receivable. …

Serving the Needs of Internal Operations

The Generally Accepted Accounting Principles (GAAP) have been established to provide a nationwide standard of accounting. Using GAAP reporting supplies financial statements with a consistent structure, making them easily understood and comparable for external entities. The IRS and outside investors …

Certified Public Accountants

The accounting profession is highly respected in the business world. In fact, accountants are considered the most trusted professional group in America (What Financial Problems? p.54). Given the amount of education and experience required to receive certification this is an …

The Importance of Internal Controls

No company wants to be the victim of fraud or embezzlement. In one current case, Pedro Espada and his son stole more than a half a million dollars from a nonprofit health care network. Mr. Espada was the chief executive and …

The Importance of Bank Reconciliation

This simple procedure of reconciling bank accounts is extremely important. However, for a variety of reasons, many people just don’t do it. This is a primary way to establish internal control over a company’s cash. The goal is to compute …