Accounting Tools

JANUARY 26, 2025

For example, managers could have created false sales , which require that corresponding accounts receivable also be stated on the books. The CEO decides to take a "big bath" in its accounting by taking the following steps: Write off selected assets. A big bath can be employed to write off these receivables.

Financial Statements 75

Financial Statements Account Receivables Accounts Receivable Accounts Receivable 75

Accounting Tools

JUNE 9, 2024

What are General Purpose Financial Statements? General purpose financial statements are those financial statements released to a broad group of users. These statements include the following: Income statement. Who Receives General Purpose Financial Statements?

Financial Statements 52

Financial Statements Expense Reports Auditing Financial Reporting 52

Accounting Tools

MAY 13, 2024

What is an Accounting Convention? An accounting convention is a common practice used as a guideline when recording a business transaction. It is used when there is not definitive guidance in the accounting standards that govern a specific situation.

Accounting 75

Accounting Accounting Financial Statements Bookkeeping 75

Tipalti

FEBRUARY 27, 2025

Understanding financial statements is essential for accounting and finance team members, CEOs, business owners, creditors, and shareholders. This article provides financial statement basics and some more advanced concepts for complex companies.

Financial Statements 40

Financial Statements Accounting Accounting Financial Reporting 40

Accounting Tools

JULY 14, 2024

What is a Financial Statement Compilation? A financial statement compilation is a service to assist the management of a business in presenting its financial statements. When completed, the accountant provides a written report that should accompany the compiled financial statements.

Financial Statements 40

Financial Statements Auditing Financial Reporting Accounting 40

Accounting Tools

JANUARY 2, 2024

What are Accounting Reports? Accounting reports are compilations of financial information that are derived from the accounting records of a business. More commonly, accounting reports are considered to be equivalent to the financial statements. Why are Accounting Reports Important?

Financial Statements 75

Financial Statements Accounting Accounting Budgeting 75

Accounting Tools

MARCH 27, 2023

Related Courses How to Conduct a Compilation Engagement How to Conduct a Review Engagement How to Conduct an Audit Engagement What is Public Accounting? Public accounting refers to a business that provides accounting services to other firms. This can include the handling of many accounting functions on an outsourced basis.

Financial Statements 75

Financial Statements Accounting Accounting Auditing 75

Accounting Tools

JULY 16, 2024

What is Nonprofit Accounting? Nonprofit accounting refers to the unique system of recordation and reporting that is applied to the business transactions engaged in by a nonprofit organization. Nonprofit accounting employs the following concepts that differ from the accounting by a for-profit entity: Net assets.

Accounting 75

Accounting Accounting Financial Statements Budgeting 75

Accounting Tools

MARCH 27, 2023

Related Courses Cost Accounting Fundamentals Financial Analysis What is Cost Accounting? Cost accounting examines the cost structure of a business. None of these tools are used by financial accountants, who are more concerned with the production of financial statements.

Cost Accounting 75

Cost Accounting Financial Statements Accounting Accounting 75

Accounting Tools

OCTOBER 21, 2023

Related Courses Accountants' Guidebook Bookkeeping Guidebook What is an Accounting Period? An accounting period is the span of time covered by a set of financial statements. This period defines the time range over which business transactions are accumulated into financial statements.

Financial Statements 75

Financial Statements Accounting Accounting Financial Reporting 75

Accounting Tools

JUNE 22, 2024

Other comprehensive income is those revenues, expenses, gains, and losses under both Generally Accepted Accounting Principles and International Financial Reporting Standards that are excluded from net income on the income statement. This means that they are instead listed after net income on the income statement.

Financial Statements 98

Financial Statements Financial Reporting Tax Accounting 98

Accounting Tools

JUNE 8, 2023

Related Courses Accountants’ Guidebook Bookkeeper Education Bundle Bookkeeping Guidebook What is the Accounting Cycle? The accounting cycle is the actions taken to identify and record an entity's transactions. These transactions are then aggregated at the end of each reporting period into financial statements.

Financial Statements 75

Financial Statements General Ledger Accounting Accounting 75

Accounting Tools

OCTOBER 8, 2023

The key element in the preceding definition is intent. A company could make false representations in its financial statements simply because the accounting staff made a mistake in compiling certain financial information.

Financial Statements 75

Financial Statements Auditing Accounting Accounting 75

Accounting Tools

DECEMBER 13, 2023

What is Accounting Practice? Accounting practice is the system of procedures and controls that an accounting department uses to create and record business transactions. Auditors rely upon consistent accounting practice when examining a company's financial statements.

Accounting 75

Accounting Accounting Financial Statements QuickBooks 75

Accounting Tools

MARCH 1, 2024

What is Tax Accounting? Tax accounting refers to the rules used to generate tax assets and liabilities in the accounting records of a business or individual. Tax accounting is derived from the Internal Revenue Code (IRC), rather than one of the accounting frameworks , such as GAAP or IFRS.

Tax 75

Tax Accounting Accounting Financial Statements 75

Accounting Tools

APRIL 12, 2023

Related Courses Bookkeeper Education Bundle Bookkeeping Guidebook What is the Cash Basis of Accounting? The cash basis of accounting is the practice of recording revenue when cash has been received, and recording expenses when cash has been paid out. Audited financial statements.

Accruals 75

Accruals Financial Statements Accounting Accounting 75

Accounting Tools

AUGUST 14, 2024

Presentation of a Business Combination When there is a business consolidation, the acquirer thereafter reports consolidated results that combine its own financial statements with those of the acquiree.

Financial Statements 98

Financial Statements CPA Accounting Accounting 98

Accounting Tools

MARCH 29, 2023

Related Courses Bookkeeper Education Bundle Bookkeeping Guidebook What is an Accounting Transaction? An accounting transaction is a business event having a monetary impact on the financial statements of a business. It is recorded in the accounting records of the business.

Accounting 75

Accounting Accounting Financial Statements Accounts Receivable 75

Accounting Tools

MARCH 27, 2023

Related Courses Bookkeeper Education Bundle Bookkeeping Guidebook What is Full Cycle Accounting? Full cycle accounting refers to the complete set of activities undertaken by an accounting department to produce financial statements for a reporting period. Here are several examples of full cycle accounting: Sales.

Accounts Payable 76

Accounts Payable Accounts Payable Accounting Accounting 76

Accounting Tools

DECEMBER 20, 2023

What is an Accounting Entry? An accounting entry is a formal record that documents a transaction. In most cases, an accounting entry is made using the double entry bookkeeping system , which requires one to make both a debit and credit entry, and which eventually leads to the creation of a complete set of financial statements.

Accounting 75

Accounting Accounting Accruals General Ledger 75

Accounting Tools

JANUARY 25, 2025

The accounting standards do not allow the recognition of a gain contingency prior to settlement of the underlying event. Disclosure of a Contingent Gain If a contingency may result in a gain, it is allowable to disclose the nature of the contingency in the notes accompanying the financial statements. What is a Gain Contingency?

Financial Statements 40

Financial Statements Tax Accounting Accounting 40

Accounting Tools

MAY 19, 2023

Related Courses Accountants’ Guidebook Bookkeeper Education Bundle Bookkeeping Guidebook What is a Ledger Account? A ledger account contains a record of business transactions. Terms Similar to Ledger Account A ledger account is also known as an account.

General Ledger 75

General Ledger Accounting Accounting Reconciling 75

Accounting Tools

DECEMBER 10, 2023

What is the Accrual Basis of Accounting? The accrual basis of accounting is the concept of recording revenues when earned and expenses as incurred. The accrual basis of accounting is advocated under both generally accepted accounting principles ( GAAP ) and international financial reporting standards ( IFRS ).

Accruals 75

Accruals Accounting Accounting Financial Statements 75

Accounting Tools

MAY 21, 2023

Related Courses Bookkeeping Guidebook Closing the Books New Controller Guidebook What are Accounting Adjustments? An accounting adjustment is a business transaction that has not yet been included in the accounting records of a business as of a specific date. Recognizing revenue that has not yet been billed.

Accruals 75

Accruals Accounting Accounting Billing 75

Accounting Tools

JULY 8, 2023

Related Courses Accountants’ Guidebook Bookkeeping Guidebook The Balance Sheet What are Contra Accounts? A contra account offsets the balance in another, related account with which it is paired. Contra accounts appear in the financial statements directly below their paired accounts.

Accounting 75

Accounting Accounting General Ledger Account Receivables 75

Accounting Tools

NOVEMBER 1, 2023

Related Courses Activity-Based Costing Cost Accounting Fundamental What is an Expense Allocation? Expense allocations are required by several accounting frameworks in order to report the full cost of inventory in the financial statements. An expense allocation occurs when indirect costs are assigned to cost objects.

Financial Statements 75

Financial Statements Cost Accounting Financial Reporting Accounting 75

Accounting Tools

JUNE 14, 2023

Related Courses Accountants’ Guidebook Bookkeeper Education Bundle Bookkeeping Guidebook What is a Suspense Account? A suspense account is an account used to temporarily store transactions for which there is uncertainty about where they should be recorded. An entry into a suspense account may be a debit or a credit.

Accounting 74

Accounting Accounting Accounts Payable Accounts Payable 74

Accounting Tools

OCTOBER 25, 2023

Related Courses Financial Analysis The Interpretation of Financial Statements What is the Accounting Breakeven Point? The accounting breakeven point is the sales level at which a business generates exactly zero profits , given a certain amount of fixed costs that it must pay for in each period.

Accruals 75

Accruals Accounting Accounting Financial Analysis 75

Billing Platform

FEBRUARY 17, 2025

Accrued revenue is a cornerstone of accrual accounting, playing a vital role in accurately reflecting a company’s financial performance. This article explores the meaning, examples, and importance of accrued revenue, while comparing it with deferred revenue and accounts receivable. What is Revenue Accrual?

Accruals 73

Accruals Accounts Receivable Accounts Receivable Account Receivables 73

Accounting Tools

MAY 15, 2023

Related Courses Bookkeeping Guidebook How to Audit Receivables New Controller Guidebook What is the Allowance for Doubtful Accounts? The allowance for doubtful accounts is paired with and offsets accounts receivable. It represents management’s best estimate of the amount of accounts receivable that will not be paid by customers.

Accounts Receivable 75

Accounts Receivable Account Receivables Accounts Receivable Accounting 75

Accounting Tools

NOVEMBER 5, 2023

Related Courses Bankruptcy Tax Guide Essentials of Corporate Bankruptcy What is the Liquidation Basis of Accounting? Liquidation basis accounting is concerned with preparing the financial statements of a business in a different way if its liquidation is considered to be imminent. Forced liquidation.

Accruals 71

Accruals Accounting Accounting Financial Statements 71

Accounting Tools

JANUARY 25, 2025

Accounting for a Guarantee A guarantee can create a liability for the guarantor that may need to be recognized , if the amount of the eventual payment can be reasonably determined and the payment is probable. Related AccountingTools Courses Accounting for Guarantees Sustainability guarantee.

Financial Statements 40

Financial Statements Accounting Accounting 40

Accounting Tools

AUGUST 7, 2023

Related Courses Accountants' Guidebook GAAP Guidebook What is a Subsequent Event? A subsequent event is an event that occurs after a reporting period, but before the financial statements for that period have been issued or are available to be issued.

Financial Statements 75

Financial Statements Collections Invoicing Accounting 75

Accounting Tools

AUGUST 29, 2024

This is a key part of the financial statement consolidation process, resulting in a set of financial statements that are presented solely in the parent company’s reporting currency. Remeasure the financial statements of the foreign entity into the reporting currency of the parent company.

Financial Statements 75

Financial Statements Accounting Accounting 75

Accounting Tools

JULY 11, 2024

Or, the transactions are designed to sidestep the reporting requirements of the applicable accounting framework , such as GAAP or IFRS. There has been a general trend in the formulation of accounting standards to allow fewer and fewer off balance sheet transactions. Related AccountingTools Course The Balance Sheet

Financial Statements 75

Financial Statements Accounting Accounting 75

Accounting Tools

MAY 24, 2023

By using a soft close, the accounting department can issue financial statements very quickly and then return to its normal day-to-day activities. The reduced accuracy level makes the soft close impractical for reviewed or audited financial statements that are read by outsiders.

Accruals 75

Accruals Financial Statements Account Reconciliation Auditing 75

Accounting Tools

JULY 14, 2023

An adverse opinion is a statement made by an entity’s outside auditor , that the entity’s financial statements do not fairly represent its results, financial position , and cash flows. It may also result in the firing of a firm’s CFO and controller , since they are responsible for the financial statements.

Financial Statements 75

Financial Statements Auditing Accounting Accounting 75