Expanded Accounting Equation Explanation and Examples

Rearrangement in such a way can be useful when looking at bankruptcy. The equation layout can help shareholders to see more easily how they will be https://business-accounting.net/ compensated. For another example, consider the balance sheet for Apple, Inc., as published in the company’s quarterly report on July 28, 2021. The balance sheet is the financial […]

How to Estimate the Final Maturity Value on Savings Bonds

A short-term bond pays relatively less interest but the investor gains flexibility. The money will be repaid in a year or less and can be invested at a new, higher, rate of return. The interest rate on long-term bonds is higher to compensate for the interest rate risk the investor is taking on. The investor […]

1 10 Adjusting Entry Examples Financial and Managerial Accounting

This is true because paying or receiving cash triggers a journal entry. This means that every transaction with cash will be recorded at the time of the exchange. We will not get to the adjusting entries and have cash paid or received which has not already been recorded. If accountants find themselves in a situation […]

A Primer on Accrued Expenses 6 Examples

First, when the expense is incurred, we create a journal entry for it — and create a debit based on accounts payable. Accrued expenses are expenses that are incurred but still pending payment. With an accrued expense, we make a journal entry along with an offsetting liability. A business should use accrued expenses to produce […]

Capital Budgeting: Definitions, Steps & Techniques

With project investments below pre-COVID levels, selecting the right projects and assets to invest in is critical. Capital budgeting methods look at cash flows to give an indicator of economic performance and feasibility. http://www.smfprint.com/project/blackburn-rovers-shop/ Capital budgeting is different from actual budgeting, which involves allocation of funding to projects an organization decides to move ahead with […]