The accounting cycle involves a number of steps that are repeated in each reporting period as they correspond to the business processes. They verify the transactions and are implemented to prepare ...

Learn what every business owner needs to know about financial accounting, accounting software and financial statements.

Accountants record transactions between buying companies and selling companies differently depending on when the transfer of purchased goods actually occurs. Which company pays for shipping charges to ...

Sale and leaseback transactions have long been popular because they present benefits to both seller-lessees and buyer-lessors. The accounting for such transactions has changed significantly, though, ...

Related-party transactions have played a significant role in accounting failures and frauds. In a study of Securities and Exchange Commission fraud allegations by the Committee of Sponsoring ...

To continue reading this content, please enable JavaScript in your browser settings and refresh this page. In the world of mergers and acquisitions, earnouts (also ...

Audited financial statements are independent CPA evaluations costing thousands. They include balance sheets, cash flow, ...

An income statement presents the results of a company’s operations for a given period—a quarter, a year, etc. The income statement presents a summary of the revenues, gains, expenses, losses, and net ...

Accounting is vital to a business’s financial hygiene; here’s everything entrepreneurs need to know about it. Many, or all, of the products featured on this page are from our advertising partners who ...

Understanding these concepts can help you make smarter financial decisions in the long run and day to day. Many, or all, of the products featured on this page are from our advertising partners who ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Barter exchange takes place when an ...