Sarbanes-Oxley Act

The Sarbanes-Oxley Act is legislation passed in July of 2002 which addressed flaws in the governance of U.S. publicly traded corporations.  The legislation is named […]

Other comprehensive income refers to income, expenses, gains, or losses which under U.S. GAAP are excluded from the income statement. Rather, these transactions are accounted […]

Permanent accounts are accounts whose balances carry over from one accounting period to another.  Permanent accounts are shown on the balance sheet. In other words, […]

Revenue recognition refers to the accounting rules that govern the amount of revenue which a company can recognize in a given period.  Under U.S. GAAP, […]

Petty cash refers to a currency fund companies use for small purchases.   The petty cash fund is a convenient way for companies to account for […]

Prepaid expenses are payments made for expenses which have not yet been consumed.  Because prepaid expenses reflect goods or services which are owed to the […]

Preferred stock is a class of stock that has preference over common stock in respect to dividends and liquidation proceeds.  Preferred stock generally pays a […]

Paid-in capital refers to the amount of monetary capital that shareholders have contributed to the company.  Paid-in capital is one of the two main sources […]

Other revenue is a classification for revenue produced from sources outside of the company’s normal operations.  Other revenue is disclosed as a separate line item […]