Financial Accounting
This Category is dedicated to articles related to Financial Accounting.
Meaning of Bills Payable Bills Payable is a liability document which shows the indebtedness of an individual, an organization, a bank, etc. When an individual or an organization makes …
Definition of Notes Payable When a company issues promissory notes, it maintains the records of the amount of promissory notes issued in a ledger account. Such account is termed …
Companies raise debt and equity capital to buy operating and non-operating assets which are expected to generate revenues going forward. Operating assets are those short-term or long-term, liquid or illiquid, assets acquired …
Companies raise debt and equity capital to buy operating and non-operating assets which are expected to generate revenue going forward. The activities related to the utilization of these operating …
There are Advantages and Disadvantages of Fund Flow Statement. They should be considered before forming any view of the sources and uses of funds.
Net Profit is a measure of profitability of the company after taking into consideration all costs incurred during an accounting period. Net profit is also referred to as net …
Depreciation is a very important and real operating expense. Although depreciation is a non-cash expense and does not require any current cash outflow, nonetheless it can’t be ignored in …
Capitalizing versus expensing different costs during the accounting of long-lived assets will have an effect on the company’s profitability, financial ratios and trends. Both IFRS and U.S.GAAP have several …
Revaluation of long-lived assets is an important technique in finance that is used to figure out the true value of the assets owned by the firm. Long-lived assets are …
Impairment of long-lived assets is one of the key accounting decisions taken by a company. This decision has an impact on the company’s profitability, classification of the cash flows, …