Comprehensive Income and Other Comprehensive Income 

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 […]

Owners’ equity is the portion of a company’s balance sheet which represents the shareholders’ claim on the assets of the business.  Owner’s equity is calculated […]