What Is a Balance Sheet in Accounting?

What Is a Balance Sheet? A balance sheet is a financial statement that reports company assets, liabilities, and shareholder equity for a specific period. Balance sheets serve as the basis for calculating returns on investment and evaluating the financial health and structure of a business. Put simply, these are financial Read more…

What is Prepaid Rent?

Prepaid Rent and Accounting Accounting for your prepaid rent expenses doesn’t need to be complicated, but it is something that requires your attention at the end of the month. The accountant or bookkeeper records the prepaid asset to the balance sheet account with a basic general ledger system. This could Read more…

Retained Earnings Explained

Whenever a business takes in money, the amount garnered usually gets divided for different allocations. A part of it goes into company expenses, employee salary, equipment updates, inventory, etc. Likewise, a portion of the money goes to the people who invested in the business, the shareholders, in the form of Read more…

Accrual to Cash

Organizations regulate their financial account statements using either of two accounting bases: cash or accrual. Most businesses use the accrual basis of accounting to comply with Generally Accepted Accounting Principles (GAAP). It became the standard because of its ability to show a more accurate, real-time account of a business’s performance. Read more…

Adjusted Trial Balance

Accounting cycles are vital in recording a company’s financial interactions and their resulting financial standing. It begins from the first transaction up to the final balancing. The most important part of this cycle is the trial balance. A trial balance is a document that shows a business’s accounting information. It Read more…