Accounting

Financial accounting is a subdivision of accounting which records, summaries, and reports numerous transactions as a company operates throughout a time frame. The company should summarise these transactions as it prepares financial statements, which includes cash flow statement, income statement, as well as balance sheet, that record the operating performance of its business throughout a … Read moreLesson for Financial Accounting

The capital account of a company indicates the amount the company owes to its stakeholders. In accounting and bookkeeping, the capital account is one of the ledger accounts (Also see Capital Budgeting in Business Investments). One can use it to document the sum that the investors have paid to the company, the company’s profit throughout … Read moreIntroduction to Capital Account

In fair value accounting, people would use current market values (Also see Are Market Value and Book Value the Same?) to recognize certain liabilities and assets. Fair value is defined as the predicted price that one can sell an asset or settle a liability to a third party in an orderly transaction based on current conditions of … Read moreIntroduction to Fair Value Accounting

Another name for management accounting is managerial accounting (Also see Distinguishing Financial Accounting & Management Accounting). It involves the preparation of reports as well as accounts which give precise and pertinent information to the management of a firm so that they can make daily decisions based on those data. It blends accounting, management, as well … Read moreThe Importance of Management Accounting

As a leader, you have to be responsible for many things. What determines your impact as a leader is the performance of people that you lead. There are a lot of leaders around us, and the similarity between them is that people under their leadership look upon them as a guide. It means that people … Read moreCharacteristics of Excellent Leaders

Market value stands for the price you can acquire when you sell an asset in a market that is open and competitive. On the other hand, an asset’s book value is the cost you spent when you purchase it initially, and you need to make adjustments for any successive alterations, for example, depreciation or impairment … Read moreAre Market Value and Book Value the Same?