Contra Account
A contra account is a type of account that is used to offset or reduce the balance of another related account.
Financial Accounting
Financial accounting refers to the process by which incoming and outgoing cash flows are recorded. These are typically summarized through three key statements: the income statement, the balance sheet, and the cash flow statement.
Current Assets
Table of Contents What are Current Assets? Understanding Current Assets Current Assets in Financial Accounting How to Calculate Challenges of Managing Current Assets Examples FAQs Current Assets: Definition, Types, How to Calculate & Examples Written by Paul Boyce Posted in Finance > Financial Accounting Last Updated June 21, 2023 What are Current Assets? In the
Classified Balance Sheet
A classified balance sheet is a financial statement that categorizes a company’s assets, liabilities, and equity into current and non-current sections to provide a clear representation of its financial position.
Accounting Cycle
The accounting cycle refers to the process of recording, classifying, summarizing, and reporting financial transactions of a business over a specific accounting period.
Accounting Equation
The accounting equation represents the fundamental relationship between a company’s assets, liabilities, and owner’s equity.
Accrued Expenses
Accrued expenses refer to financial obligations incurred by a business for goods or services received but not yet paid for.
Depreciation
Depreciation is an accounting method that allocates the cost of an asset over its useful life to reflect its gradual decrease in value or usefulness.
Balance Sheet: Definition, Format & Example
The balance sheet is a key financial statement that public and private companies report on. It highlights a firm’s assets, liabilities, and equity.
Income Statement: Definition, Format & Example
The income statement details the firm’s revenue and expenses during a period of time.
EBITDA: Definition, Pros, Cons & Example
EBITDA stands for Earnings Before Interest, Tax, Depreciation, and Amortization.