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FICA Tax
The Federal Insurance Contributions Act (FICA) tax is a payroll tax which is withheld from employee wages and matched by the employer. The FICA tax […]
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Cost Principle
The cost principle is an accounting principle which states that an asset, liability, or equity should be recorded on a company’s book at the original […]
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Direct Write-Off Method
The direct write-off method refers to the expensing of a receivable when the firm deems the receivable uncollectible. The direct method involves two steps. First, […]
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Business Combination
A business combination occurs when two or more business entities combine into a single reporting entity. Under U.S. GAAP, a combination occurs between an acquirer […]
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Consolidated Financial Statements
Consolidated financial statements are the combined financial statements of a company which has one or more subsidiaries. Under U.S. GAAP, a company which has control […]
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Bond
A bond is a debt instrument which represents a loan to the issuer. Bonds generally pay periodic interest payments to the bond holder. Bonds are […]
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Bond Indenture
A bond indenture is a contract between a bond issuer and a bondholder. The bond indenture specifies the terms of the bond, such as the […]
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Cost of Goods Sold
Cost of goods sold (COGS) is the direct cost of selling an item. For a retail business, cost of goods sold represents the inventory acquisition […]
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Common Size Statement
A common size statement presents financial statement items as a percentage of a total. Common size statements are commonly used for the income statement and […]
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Bad Debt Expense
Bad debt expense is an expense account which represents accounts receivable the firm expects to go uncollected. An accounts receivable is created when a firm […]
NEW: Lectures on a variety of financial management, business strategy, and economic subjects for business owners, aspiring entrepreneurs, and investors.
