IAS 1 Presentation of Financial Statements

The statement of comprehensive income provides details of the company’s overall profitability for a specified period. The first part is the profit and loss or income statement, which lists the company’s revenue and expenses over some time and provides details regarding the net profit or loss of the company for the same period. The second […]

Accounts Payable Vs Notes Payable: What’s The Difference?

Examples of unearned revenues are deposits, subscriptions for magazines or newspapers paid in advance, airline tickets paid in advance of flying, and season tickets to sporting and entertainment events. As the cash is received, the cash account is increased (debited) and unearned revenue, a liability account, is increased (credited). As the seller of the product […]

What Is the Difference Between Assets and Plant Assets? The Motley Fool

Tangible assets are depreciated for accounting purposes whereas intangible assets are amortized. Meanwhile, fixed assets undergo depreciation, which divides the cost what is a contra account of fixed assets, expensing them over their useful lives. Depreciation helps a company avoid a significant cash outlay in the year the asset is purchased. Regardless of the company you’re analyzing, plant assets tend […]

Enterprise Value vs Equity Value: What’s the Difference?

If a house is worth $1,000,000 and has a $700,000 mortgage, the equity value is $300,000. A company with a Market Cap (equity value) of $10 billion and debt of $5 billion has an Enterprise Value of $15 billion. Investors who don’t want to take as much risk may want to root their portfolio in […]

More accountants are leaving the field than joining Whats going on?

After my role as a staff accountant, I moved to a financial analyst position and then to a controller position, all at larger publicly traded companies. I gained a ton of experience and enjoyed the journey, but I knew something was missing. I needed a way to be innovative and wanted to build something, and […]