by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What is the Balance Sheet?A balance sheet is a report or statement containing all the assets, liabilities and shareholders’ equity owned by a business at a specific time. Balance sheet is important in financial accounting, it is the financial statement that...
by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What is Equity on the Balance Sheet? Equity, also known as Shareholder’s Equity, is a special type of category of accounts representing the owner’s interest in the business or the owner’s claim on the assets. Generally, this consists of what the...
by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What is Residual Value?The residual value refers to the anticipated amount an asset is expected to yield at the end of its useful life. It is the value a company expects to realize from a fixed asset at the end of its useful life or lease. The amount a lessee pays for...
by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What is a Contra Account?A contra account is an account whose balance is the opposite of a corresponding account. In finance, a contra account reduces the value of related or corresponding account. It offsets the balance of the related account, which means when the...
by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What is Contributed Capital?Contributed capital refers to the funds invested in a company by owners in exchange for company ownership (a number of a company’s stock). Contributed capital is otherwise called paid-in-capital.How does Contributed Capital Work?On a...
by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What is Adjusted Gross Income (AGI)?Adjusted gross income is ascertained from your gross income and used to ascertain how much tax you need to pay on your income. In the U.S., it is the premises for ascertaining the tax bill of a filer, and one can receive many...
