Basics of Accounting

A financial instruments is a document that has monetary value or which establishes an obligation to pay. Examples of financial instruments are cash, foreign currencies,…

Goodwill amortization refers to the gradual and systematic reduction in the amount of the goodwill asset by recording a periodic amortization charge. The accounting standards…

There are two key concepts in the accounting for derivatives. The first is that ongoing changes in the fair value of derivatives not used in…

Current assets are located in the beginning of the assets section of the balance sheet. This part of the balance sheet contains those assets most…

The main difference between assets and liabilities is that assets provide a future economic benefit, while liabilities present a future obligation. An indicator of a…

Guaranteed payments to partners are first-priority distributions that will be made to a partner, even if a business is losing money. These payments are made…

The asset turnover ratio is an efficiency ratio that measures a company’s ability to generate sales from its assets by comparing net sales with average…

The calculation of payroll is a highly regimented process. This calculation should be followed meticulously, to ensure that there are no mistakes in the amount…

To become an accountant, there are a number of training, certification, and experience hurdles to address. In addition, there are several types of accounting tracks…

The two main types of assets are current assets and non-current assets. These classifications are used to aggregate assets into different blocks on the balance…