Accounting Archives - PersonalFinanceLab Financial Literacy Gamified Wed, 30 Dec 2020 22:00:26 +0000 en-US hourly 1 https://wordpress.org/?v=6.8.1 https://www.personalfinancelab.com/wp-content/uploads/favicon-50x50.png Accounting Archives - PersonalFinanceLab 32 32 The Accounting Cycle https://www.personalfinancelab.com/finance-knowledge/accounting/the-accounting-cycle/ Mon, 27 Aug 2018 18:49:20 +0000 https://content.personalfinancelab.com/?p=19396 The Accounting Cycle is a series of steps that businesses take to track transactions and consolidate financial information over a specific accounting period (month, quarter, year). The end result of is the production of accurate financial statements for that period and preparedness for the next accounting period. Read this article for more information.

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]]> Cost Accounting https://www.personalfinancelab.com/finance-knowledge/accounting/cost-accounting/ Tue, 26 Dec 2017 21:02:47 +0000 http://content.personalfinancelab.com/?p=17977 One area of accounting is cost accounting, which focuses on internal reporting for the purpose of improving managerial decision making. Key concepts include cost allocation, cost-volume-profit and the role of a double break-even!

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]]> Creating Financial Statements https://www.personalfinancelab.com/finance-knowledge/finance/creating-financial-statements/ Tue, 26 Dec 2017 17:15:41 +0000 http://content.personalfinancelab.com/?p=17967 A company’s financial statements give investors, managers, and other “users” a complete, honest look at its financial health. Finished financial statements follow a standardized format, letting investors compare different companies in the same industry apples-to-apples. These include Income Statements, Balance Sheets, and Cash Flow statements.

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]]> Managerial Accounting https://www.personalfinancelab.com/finance-knowledge/accounting/managerial-accounting/ Thu, 24 Aug 2017 15:52:07 +0000 http://content.personalfinancelab.com/?p=17118 Managerial accounting is the use of accounting tools to make internal decisions. This is different than financial accounting, which is used to communicate to auditors and investors. Managers in a company use managerial accounting to help with making strategic decisions.

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]]> The Love of Money: Audits and Fraud https://www.personalfinancelab.com/finance-knowledge/accounting/love-money-audits-fraud/ Tue, 22 Aug 2017 18:09:12 +0000 http://content.personalfinancelab.com/?p=17076 Greed most commonly manifests as financial fraud in businesses, driven by individuals looking to enrich themselves and their companies by ANY means. Financial audits are used to identify fraud (or general shady bookkeeping practices)

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]]> Corporate Debt https://www.personalfinancelab.com/finance-knowledge/finance/corporate-debt/ Wed, 16 Aug 2017 13:27:29 +0000 http://content.personalfinancelab.com/?p=17024 Do you ever wonder how companies have the money to build new stores, develop new products, or perhaps even buy another company? Usually companies do not keep enough cash for these transactions sitting in their bank account - it needs to be raised from outside investors. This process creates corporate debt.

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]]> Ownership and Dividends https://www.personalfinancelab.com/finance-knowledge/finance/ownership-and-dividends/ Mon, 14 Aug 2017 21:45:39 +0000 http://content.personalfinancelab.com/?p=16999 Owning a share in a company means that you are an integral part of the puzzle that helps the company tick. Typically, investors choose to own a stock for one of two profit driven reasons: the dividends they will receive from the company, or the hope that the stock price will increase and they will be able to sell it for a higher price than they purchased it at.

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]]> Issuance of Stocks and Paying Dividends https://www.personalfinancelab.com/finance-knowledge/accounting/issuance-stocks-paying-dividends/ Thu, 10 Aug 2017 21:04:15 +0000 http://content.personalfinancelab.com/?p=16929 Big corporations are very powerful entities that can possess more capital than some countries in the world. However, every company begins as a small start-up business. Once a private company grows large enough, they can become public, meaning they sell stocks to the public to finance future endeavors. After selling stocks to the public, the company will have to pay dividends to those who have chosen to invest in them.

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]]> What is Solvency? https://www.personalfinancelab.com/finance-knowledge/finance/what-is-solvency/ Tue, 08 Aug 2017 18:56:31 +0000 http://content.personalfinancelab.com/?p=16829 Solvency is the possession of assets in excess of liabilities, or more simply put, the ability for one to pay their debts. People and organizations who are not "Solvent" face bankruptcy

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]]> Cash Planning https://www.personalfinancelab.com/finance-knowledge/accounting/cash-planning/ Wed, 02 Aug 2017 20:38:20 +0000 http://content.personalfinancelab.com/?p=16739 A cash budget is used internally by management to estimate cash inflows (receipts) and outflows (disbursements) of cash during a period and the cash balance at the end of a period. In other words, a cash budget is a plan for an organization to obtain and use resources over a specific period of time. Profitable businesses go bankrupt every day because of cash flow problems - don't let it happen to you!

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