Learn about earning, spending, saving, and investing money. Learn how they are related and how you can build wealth. Earning Do you have an allowance? Have you done chores and got paid? Do you have a job? If you have, then you have earned money. Earnings refer to the money you earn from a job. … Continue reading Earning, Spending, Saving (and Investing)
Stock market explained. Learn and understand the basics of Wall Street and the stock market for beginners. What is the Stock Market? The Stock market refers to a group of exchanges that allow stocks and other securities to be bought and sold. The stock market and Wall Street are two terms used in the United … Continue reading What is the Stock Market? How does it work?
Owning stocks allows you to be an investor in a public company. Stocks are simply a share of the company’s ownership. It doesn’t matter if you call it stocks, shares, or equity, it all refers to the same thing. A stock is a claim on the earnings and assets of a company. You are … Continue reading What are Stocks?
What is Insurance? Do I need it? What are the costs and benefits? These are all common questions and there are easy to understand answers. Insurance can seem complicated and confusing because you are paying for something that you don’t intend to use. Nobody wants to have something terrible happen to them. However, a loss … Continue reading What is Insurance?
Financial audits are intended to provide some assurance to the public that a company’s financial statements are presented fairly and accurately, in accordance with the established or stated criteria. The public may include the shareholders of the company, debtors such as bondholders, banks or other financial institutions and some government entities. In general, a financial … Continue reading Financial Audits – Basic Tests
Corporate finance is the body of knowledge that dictates the decisions a company makes about its finances.
Using a mortgage loan to buy a house has historically been a wise decision. Unlike other types of debt such as credit card debt, a mortgage is a ‘good’ use of debt since you are buying something that has the potential to appreciate over time (unlike clothing and cars which usually lose value). In addition, you … Continue reading Home Buying Mortgage Basics
The last two steps in the accounting process are preparing a trial balance and then preparing the balance sheet and income statement. This information is provided in order to communicate the financial position of the entity to interested parties. TRIAL BALANCE A trial balance is a list and total of all the debit and credit … Continue reading Accounting Trial Balance Example and Financial Statement Preparation
Learn about the concept of GAAP, or Generally Accepted Accounting Principles.
We touched briefly on liability in a previous article, and we mentioned it again during our asset discussion. But what and how do we classify something as a liability? A liability is something for which we are responsible. Liabilities are not just loans; they can be homework assignments, study material, or our little brother on Saturday night. In … Continue reading Basic Accounting: What is a Liability?
The accounts payable function of accounting is an area that requires close monitoring and accurate record keeping, unless you ‘d like to pay for things you don’t receive. Everything that you purchase in the course of operating your business is termed an “account payable”. How you choose to pay for that merchandise, may vary. Some small items … Continue reading Understanding Accounting: Accounts Payable Function
No, it is not an overdraft notice from the bank. Your statement of cash flows is a business tool used by many smart businesses to determine their flexibility when preparing budgets, making decisions about asset purchases, and to monitor their level of profitability in relation to cash availability. What is a statement of cash flows, and … Continue reading Your Accounting Statement of Cash Flows
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