Accounting Liquidity

Debt ratios can be used to describe the financial health of individuals, businesses, or governments. investors and lenders calculate the debt ratio for a company from its major financial statements, as they do with other accounting ratios. However, one must note that...

Adjusting Entry For Depreciation Expense

How To Record Depreciation Expense Accumulated depreciation reports the total amount of depreciation that has been reported on all of the income statements from the time that the assets were put into service until the date of the balance sheet. The account Accumulated...

Journal Entries

As business events occur throughout the accounting period, journal entries are recorded in the general journal to show how the event changed in the accounting equation. For example, when the company spends cash to purchase a new vehicle, the cash account is decreased...

The Difference Between A Bookkeeper And Accountant

“the skill or practice of maintaining and auditing accounts and preparing reports on the assets, liabilities, etc, of a business”. Whether you’re hiring an accountant, a bookkeeper, or anyone else for that matter, that’s good advice for any business owner to keep in...

13 Top Accounting Principles

Preparation of the Balance Sheet These are prepared at the end of an accounting period like a month, quarter or year end. Comparison of balance sheets over years helps to gauge the financial health of a business. It got its name as assets minus liabilities (net...