Category: Bookkeeping

A high level of owner’s equity is an indication that a company has a strong financial position and is better positioned to meet its financial obligations. Common stockholders are entitled to receive dividends, but only after preferred stockholders have been paid their dividends. It is a form of equity financing that carries voting rights that…

A journal entry for a small stock dividend transfers the market value of the issued shares from retained earnings to paid-in capital. Under IFRS, dividends are recognized as a liability when they are appropriately authorized and no longer at the discretion of the entity. This typically occurs when the dividend is declared by the board…

There’s space for the deposit amount and the breakdown of cash or checks to be paid in. Deposit slips also offer the facility to draw back some cash from deposited checks. If you would like to take some cash back from checks you’re depositing, you can fill in the cash taken space to save making…

Though many businesses leave their accounting to the pros, it’s wise to understand the basics of accounting if you’re running a business. To help, we’ll detail everything you need to know about the basics of accounting. Accounting involves recording, classifying, organizing, and documenting financial transactions and data for internal tracking and reporting purposes. Businesses of…

Some examples of this include any pending litigation, acquisition information, methods used to calculate certain figures, or stock options. These disclosures are usually recorded in footnotes on the statements, or in addenda to the statements. Once an accounting standard has been written for US GAAP, the FASB often offers clarification on how the standard should…