Accounting Tools

JANUARY 26, 2025

Related AccountingTools Courses Fraud Examination Fraud Schemes The Interpretation of Financial Statements Example of a Big Bath A tech company is going through a tough year with declining sales and profitability. The CEO decides to take a "big bath" in its accounting by taking the following steps: Write off selected assets.

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

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

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

JUNE 22, 2024

Other comprehensive income is designed to give the reader of a company's financial statements a more comprehensive view of the financial status of the entity, though in practice it is possible that it introduces too much complexity to the income statement.

Financial Statements 98

Financial Statements Financial Reporting Tax Accounting 98

Accounting Tools

MAY 13, 2024

It is used when there is not definitive guidance in the accounting standards that govern a specific situation. This can result in material levels of misstatement in a reporting entity’s financial statements. What is an Accounting Convention?

Accounting 75

Accounting Accounting Financial Statements Bookkeeping 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

JANUARY 25, 2025

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. However, the disclosure should not make any potentially misleading statements about the likelihood of realization of the contingent gain.

Financial Statements 40

Financial Statements Tax Accounting Accounting 40

Accounting Tools

NOVEMBER 1, 2023

Expense allocations are required by several accounting frameworks in order to report the full cost of inventory in the financial statements. This approach is required under the Generally Accepted Accounting Principles ( GAAP ) and International Financial Reporting standards ( IFRS ) accounting frameworks.

Financial Statements 75

Financial Statements Cost Accounting Financial Reporting Accounting 75

Accounting Tools

AUGUST 7, 2023

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. Depending on the situation, such events may or may not require disclosure in an organization's financial statements.

Financial Statements 75

Financial Statements Collections Invoicing Accounting 75

Accounting Tools

JANUARY 25, 2025

If these criteria are not met, it may still be necessary to mention the guarantee in the footnotes accompanying the financial statements. Related AccountingTools Courses Accounting for Guarantees

Financial Statements 40

Financial Statements Accounting Accounting 40

Accounting Tools

APRIL 14, 2023

Adherence to a reasonable level of understandability would prevent an organization from deliberately obfuscating financial information in order to mislead users of its financial statements. The reader should be able to easily locate cross-referenced information within the financial statements.

Financial Statements 75

Financial Statements Bookkeeping Accounting Accounting 75

Accounting Tools

JANUARY 2, 2024

More commonly, accounting reports are considered to be equivalent to the financial statements. These statements include the following reports: Income Statement The income statement states the sales earned during a period, less expenses, to arrive at a profit or loss.

Financial Statements 75

Financial Statements Accounting Accounting Budgeting 75

Billing Platform

FEBRUARY 17, 2025

Understanding accrued revenue meaning is essential because it aligns a companys financial statements with the business’s actual performance. Accrued Revenue: Definition : Revenue is earned but not yet billed or collected. Example : A customer pays a deposit for a custom product expected to ship months later.

Accruals 73

Accruals Account Receivables Accounts Receivable Accounts Receivable 73

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

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

Presentation of Off Balance Sheet Transactions Though off balance sheet assets and liabilities do not appear on the balance sheet, they may still be noted within the accompanying financial statement footnotes. 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

MARCH 27, 2023

Financial Statement Preparation Personnel assist clients with the direct preparation of their financial statements. Financial Statement Auditing This involves auditing the financial statements of clients. These services usually fall into one of the classifications noted below.

Financial Statements 75

Financial Statements Accounting Accounting Auditing 75

Accounting Tools

JULY 8, 2023

Related Courses Business Ratios Guidebook Financial Analysis The Interpretation of Financial Statements What is Financial Analysis? Financial analysis is the examination of financial information to reach business decisions. This examination can also focus on whether to rent, lease, or purchase an asset.

Financial Analysis 75

Financial Analysis Financial Statements 75

Accounting Tools

NOVEMBER 24, 2023

Auditors are particularly watchful for contingent assets that have been recorded in a company's accounting records , and will insist that they be eliminated from the records before issuing an auditor’s opinion on its financial statements. This means that contingent liabilities are more likely to be recorded than contingent assets.

Financial Statements 76

Financial Statements Bookkeeping Accounting Accounting 76

Accounting Tools

JUNE 18, 2023

Related Courses The Balance Sheet The Income Statement The Interpretation of Financial Statements The Statement of Cash Flows What is Relevant Information? Relevant information is data that can be applied to solve a problem.

Financial Statements 75

Financial Statements Financial Reporting Accounting Accounting 75

Accounting Tools

MARCH 27, 2023

None of these tools are used by financial accountants, who are more concerned with the production of financial statements. Cost Accounting vs. Financial Accounting Cost accounting is a source of information for the financial statements, especially in regard to the valuation of inventory.

Cost Accounting 75

Cost Accounting Financial Statements Accounting Accounting 75

Accounting Tools

OCTOBER 23, 2023

Financial Statements The bookkeeper may prepare preliminary financial statements , but may rely upon an accountant to produce the final statements. The bookkeeper also prepares paychecks for employees, and remits payroll taxes to the government.

Bookkeeping 75

Bookkeeping Financial Statements Payroll Deposits 75

Accounting Tools

JUNE 7, 2023

The first is a correction of an error in the financial statements that was reported for a prior period. Since the second situation is both highly specific and rare, a prior period adjustment really applies to just the first item - the correction of an error in the financial statements of a prior period.

Financial Statements 74

Financial Statements Account Reconciliation Accounting Accounting 74

Accounting Tools

OCTOBER 21, 2023

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. For internal financial reporting, an accounting period is generally considered to be one month.

Financial Statements 75

Financial Statements Accounting Accounting Financial Reporting 75

Accounting Tools

NOVEMBER 3, 2023

Substance over form is the concept that the financial statements and accompanying disclosures of a business should reflect the underlying realities of accounting transactions. Conversely, the information appearing in the financial statements should not merely comply with the legal form in which they appear.

Financial Statements 75

Financial Statements Financial Reporting Bookkeeping Billing 75

Accounting Tools

JUNE 8, 2023

These transactions are then aggregated at the end of each reporting period into financial statements. The cycle is also needed to produce financial statements. In addition, most businesses use accounting software to accumulate transactional data and convert them into financial statements.

General Ledger 75

General Ledger Financial Statements Accounting Accounting 75

Accounting Tools

JULY 13, 2023

The unadjusted trial balance is the listing of general ledger account balances at the end of a reporting period, before any adjusting entries are made to the balances to create financial statements. The unadjusted trial balance is used as the starting point for analyzing account balances and making adjusting entries.

General Ledger 74

General Ledger Financial Statements Accruals Bookkeeping 74

Accounting Tools

AUGUST 9, 2024

Intercompany loans are recorded in the financial statements of individual business units, but they are eliminated from the consolidated financial statements of a group of companies of which the business units are a part, using intercompany elimination transactions.

Financial Statements 74

Financial Statements Corporate Finance Tax Auditing 74

Accounting Tools

JULY 16, 2024

Financial statements. The financial statements produced by a nonprofit entity differ in several respects from those issued by a for-profit entity. For example, the statement of activities replaces the income statement , while the statement of financial position replaces the balance sheet.

Accounting 75

Accounting Accounting Financial Statements Budgeting 75

Accounting Tools

APRIL 12, 2023

Lenders do not feel that the cash basis generates overly accurate financial statements , and so may refuse to lend money to a business reporting under the cash basis. Audited financial statements. However, this may not be the case for a small business that cannot afford the services of a CPA to prepare its books.

Accruals 75

Accruals Financial Statements Accounting Accounting 75

Accounting Tools

OCTOBER 22, 2023

Examples of Relevance in Accounting Here are several examples of how relevance is used in accounting: A company controller decides to accelerate the month-end close, so that she can issue financial statements in three days, rather than the old standard of three weeks.

Financial Statements 75

Financial Statements Bookkeeping Accounting Accounting 75

Accounting Tools

DECEMBER 17, 2023

There will be a reduced cost for companies once the two accounting frameworks are more closely aligned, since they will not have to pay to have their financial statements restated to show results under the other framework in cases where they need to report their results in locations where the other framework is required.

Financial Statements 75

Financial Statements Financial Reporting Accounting Accounting 75

Accounting Tools

AUGUST 9, 2024

If a business only issues financial statements on an annual basis, then the calculation of the inventory change will span a one-year time period. More commonly, the inventory change is calculated over only one month or a quarter, which is indicative of the more normal frequency with which financial statements are issued.

Financial Statements 75

Financial Statements Budgeting Billing Auditing 75

Accounting Tools

APRIL 24, 2024

A reporting period is the span of time covered by a set of financial statements. Organizations use the same reporting periods from year to year, so that their financial statements can be compared to the ones produced for prior years. What is a Reporting Period? It is typically either for a month, quarter, or year.

Financial Statements 71

Financial Statements Financial Analysis Financial Reporting Bookkeeping 71