Common Stock

Common stock refers to the equity units of a corporation.   Each stock is called a share. When a company creates its main formation document, known […]

Cash flow from financing activities, also called financing cash flow, is the net cash flow associated with payments made from and to the firm’s capital […]

Assets are resources that are expected to provide the firm with future economic benefits.  Assets may be categorized as long-term or current. A current asset […]

Cash equivalents are financial securities which can be sold quickly and without impairment in value. Common cash equivalent securities include U.S. Treasury bills and commercial […]

Cash flow from operations, also called operating cash flow, refers to the difference between cash received from operating sources and cash disbursed for inventory and […]

Accounts payable represent obligations of the firm to pay for goods purchased and services consumed but not yet paid for. Accounts payable is listed as […]

Amortization is the periodic expensing of an intangible asset over the asset’s estimated useful life. Common intangible assets include copyrights, trademarks, and patents.  Like depreciation, […]

Accumulated depreciation refers to the aggregate amount of depreciation expense occurred since the fixed assets were placed on the company’s books.  Accumulated depreciation is a […]

Accelerated depreciation refers to methods of calculating an asset’s depreciation which recognize greater depreciation in the earlier years of an asset’s useful life.   Accelerated depreciation […]