What Is GAAP? Definition, 10 Principles, Compliance

This allows for more standardized reporting, enabling investors and other financial statement users to better compare the financial statements of multiple companies within a common sector or industry. The information in these financial statements help lenders, investors and others evaluate a company or organization. The FASB was formed in 1973 to succeed the Accounting Principles […]

Valuing a Company: Business Valuation Defined With 6 Methods

Assume that Best Buy makes a sale on account for $1,000, with payment due in four months. The applicable annual rate of interest is 12 percent, and payment is made at the end of four months. Proper expense recognition dictates that the company also reasonably estimates the expected discounts to be taken and charges that […]

What is an Invoice Number? Best Methods and Examples

There are many different invoice payment terms, so it’s important to choose the right payment terms for your business. Choose invoicing terms that encourage early or advance payment to maximise your cash position and the likelihood of getting paid. Within an invoice, you must provide your business contact information, including name, address, phone number, and […]

Online Bookkeeping Class Tuition

You should check with your state, local government, and/or licensing board to find out which requirements may be applicable in your state. Click here for contact information on state licensing/regulatory boards and certain professional licensing information. Discover how you can balance work, life, and school to develop the skills to help you advance in your […]

Finding Small Business CPAs: Tips Before You Choose

If you have a pretty simple tax return, you may not need anything more than a free tax filing service. Paid packages from tax providers can also be a less expensive way for people with more complicated tax situations to get their taxes done rather than seeing an in-person professional. If meeting with a […]

Internal Controls: Definition, Types, and Importance

We are the American Institute of CPAs, the world’s largest member association representing the accounting profession. Today, you’ll find our 431,000+ members in 130 countries and territories, representing many areas of practice, including business and industry, public practice, government, education and consulting. In many cases, the sales have also been documented either by a paper […]

Cumulative preferred stock definition

Though there are sacrifices for this right, preferred stock is simply a different vehicle for owning part of a business. Preferred stock issuers tend to group near the upper and lower limits of the credit-worthiness spectrum. Some issue preferred shares because regulations prohibit them from taking on any more debt, or because they risk being […]

Accounting Articles, Research, & Case Studies HBS Working Knowledge

Dutch home health care organization Buurtzorg avoids middle management positions and instead empowers its nurses to care for patients as they see fit. Tatiana Sandino and Ethan Bernstein explore how removing organizational layers and allowing employees to make decisions can boost performance. Accounting is a back-office function where employees may not directly interface with customers, […]

Characteristics of Capital Market

Primary markets consist of companies that issue securities and investors who purchase those securities directly from the issuing company. Whenever a company goes public it sells its stocks and bonds to large scales institutional investors like hedge funds and mutual funds. Businesses that are listed on stock exchanges (secondary markets for stocks) are called public […]