by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What is an Income Statement?An income statement is a financial statement that states the losses incurred and profits accrued by a company over a period of time. Note: The income statement is also known as the Profit and Loss statement, P&L Statement, expense...
by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What is a Walk-Through Test?In auditing and accounting, a walk-through test is a technique or a measure used by auditors to ascertain the authenticity and reliability of a company’s accounting system. Auditors use the walk-through test procedure to each step of...
by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What is Additional Paid In Capital?Additional paid-in capital refers to the additional amount that an investor pays beyond the par-value of a stock issued. In a balance sheet, this excessive amount is considered a part of contributed surplus account under shareholders...
by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What is a Fixed Asset?Tangible assets and properties that are owned by a company and generates income for the company are called fixed assets. These assets are tangible and have a long life-span in that they cannot be easily converted into cash. Examples of fixed...
by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What are Footnotes to The Financial Statements?When companies file their annual financial statements, they often add footnotes beneath the statement. Footnotes to the financial statements refer to extra information that a company supplies about its finances when...
by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What is Imputed Value?An imputed value of an item should not be confused with the actual value. An imputed value is assigned to an item when the actual value is not known, hence, this value is realized based on an assumption or estimation of the actual value. An...
