Skip links

Category: Bookkeeping

What are Retained Earnings? Guide, Formula, and Examples

Revenue is the total income you make from sales before deducting operating expenses, taxes, and dividend payouts. Business revenue is calculated period by period and recorded at the top of your income statement. Retained earnings is great proof of your business’s financial performance, and careful

Private vs Public Company: What’s the Difference?

For example, a public company may issue bonds which investors purchase. But it won’t have to surrender any shares of ownership in the company to the investor. In most countries, public companies are required by law to use generally accepted accounting principles. What are the

Statement of Owners Equity Definition + Example

Finally, it’s important to note that owner’s equity is different from an owner’s draw, which refers to money that is actually paid to the owner(s) of a business. Home equity borrowing typically translates into a lower interest rate, starting a small business which is also

The Times Interest Earned Ratio and What It Measures

The times interest earned formula is EBIT (company’s earnings before interest and taxes) divided by total interest expense on debt. Debts may include notes payable, lines of credit, and interest obligations on bonds. The Low TIE Ratio is a ratio of a company’s earnings before

1 3 Describe Typical Accounting Activities and the Role Accountants Play in Identifying, Recording, and Reporting Financial Activities Principles of Accounting, Volume 1: Financial Accounting

IFRS currently has complete profiles for 167 jurisdictions, including those in the European Union. The United States uses a different system, the generally accepted accounting principles (GAAP). With the increasingly complex nature of global business, the need for reliable, transparent financial information is more pronounced

How to Void a Check and When to Use One?

Employers often use voided checks to set up direct deposits for their payroll, and service providers may need them to set up direct debits. This is because a blank check has all the information they need, such as routing or account numbers. Using a voided