Accounts Receivable

Accounts receivable represent sales made to customers who have not yet paid for them. Accounts receivable are thus monies owed to the firm from customers.   […]

The statement of changes in equity is a financial statement which details the changes in the equity section of the balance sheet over a given […]

Financial accounting refers to the type of accounting concerned with reporting financial information to the firm’s shareholders and creditors. This information is provided through the […]

The income statement, also known as the profit and loss statement, is a financial statement which conveys basic information regarding business operations over a given […]

The cash flow statement is a financial statement which presents the company’s cash receipts and disbursements over a stated period. The net cash flow corresponds […]

The accounting cycle refers to a series of steps taken to aggregate accounting transactions into financial statements.   For a manual accounting system, the cycle begins […]

Generally Accepted Accounting Principles, otherwise knows as U.S. GAAP, or just GAAP, are rules governing the financial reporting  of firms which issue financial securities in […]

The balance sheet, also called the statement of financial position, is a financial statement which shows the company’s assets, liabilities, and owner’s equity at a […]

An accounting journal is a form where financial transactions are initially recorded before moving through the accounting cycle. Entries are made chronologically and in accordance […]

The accounting equation states that assets = liabilities + owner’s equity. Or to put it another way, a company’s economic resources must equal the value […]