The Balance sheet is one of the more widely recognized accounting tools, and is used extensively in the banking and financial world to determine a businesses overall health. What is the balance sheet, and why is it so important in determining the overall health of a business? Let’s answer this two part question, one piece at … Continue reading Your Accounting Balance Sheet
Tag: basics
Fundamental Concepts of Accounting
Generally Accepted Accounting Principles (GAAP).
What is a Profit and Loss Report?
Understanding Accounting Basics The Profit and Loss report generated by your manual record keeping, your computer software, or the accountant you’ve previously hired, is also known as an Income Statement. This is perhaps one of the easier reports to compile, but one of extreme importance. Why? Because the businesses net income or loss is the result shown on … Continue reading What is a Profit and Loss Report?
What Are Debits and Credits?
Understanding accounting debits and credits.
Basic Accounting Terminology 101
Accounting Terms, Principles, and Concepts Prior to actually beginning work as an accountant, there is generally exposure to accounting terminology and concepts; whether in the form of classroom instruction or as an intern with on-the-job training. However, rather than risk the possibility of an individual beginning work as a bookkeeper, or an accounting intern, without the … Continue reading Basic Accounting Terminology 101
Why Do We Need Accounting?
Accounting’s Importance to Business So why do we need accounting? Asking that question of an accountant is like asking a farmer why we need rain. We need accounting because it’s the only way for business to grow and flourish. Accounting is the backbone of the business financial world. After all, accounting was created in response to the development … Continue reading Why Do We Need Accounting?
Bonds: Calculating Yield
When talking about bonds (especially when buying them) you have to take into consideration the yield of the bond. Simply put, a bond’s yield shows the relationship of the investment and the income. For the sake of comparability yield is always shown as an annualized (yearly) percentage. Current YieldAlthough we may know the coupon rate … Continue reading Bonds: Calculating Yield
Bonds: An Introduction
A bond is a type of debt security, where the issuer owes the holders a debt and is obligated to pay the coupon rate and face value back, together with other obligations, stated in the terms. This is the technical definition of bonds. Here we will help you familiarize yourself with the terms used in … Continue reading Bonds: An Introduction
Calculating Different Types of Annuities
Definition An annuity is a series of payments required to be made or received over time at regular intervals. The most common payment intervals are yearly (once a year), semi-annually (twice a year), quarterly (four times a year), and monthly (once a month). Some examples of annuities: Mortgages, Car payments, Rent, Pension fund payments, Insurance … Continue reading Calculating Different Types of Annuities
The Power of Compounding – Interest Examples
Time exerts the greatest influence on your investment portfolio than any other force. Through the power of compounding, a small amount of money over time can grow into a substantial sum. Compounding is an investor’s best friend. Investments can increase in value over time – and the longer the time frame, the greater the value. … Continue reading The Power of Compounding – Interest Examples
