What Are Liabilities in Accounting?

Liabilities in accounting are the financial obligations of a company, such as money owed to suppliers, wages owed to staff, and outstanding loans. Accountants record this information in the balance sheet. What Are Liabilities in Accounting? The definition for liabilities in accounting refers to a company’s financial responsibilities. For small Read more…

What is Posting in Accounting?

Billions of financial transactions happen each day. Every business that operates as a financial entity carries out plenty of financial transactions – transactions that they need to record and keep under control. One way they do this is by using an accounting system and taking advantage of posting in accounting. Read more…

Stock Dividend vs. Stock Split

Stock dividends and stock splits are two terms that are generally used interchangeably when they shouldn’t be. The two terms may be similar, but there are differences between them. The critical difference between stock dividend vs. stock split is that while stock dividends allocate shares free of charge to current Read more…

What is a Suspense Account?

A suspense account is part of the general ledger where organizations record ambiguous entries that require further analysis before being classified. When it comes to investing, a suspense account is a brokerage account where you store cash until you can use it to purchase new investments. Definition of Suspense Account Read more…

Retained Earnings Normal Balance

The most important thing for any business is to make as much profit as possible. This is why business owners know what the retained earnings and retained earnings normal balance are, how to calculate them, and what it all means. Retained earnings are part and parcel of running a business. Read more…

Cash Disbursement Journal

How does your business process payments? More likely than not, your business uses cash on some level. If your business has cash expenses, then you need to keep a cash disbursement journal to process and record these expenses. Having a journal and recording entries for transactions should come as second Read more…

Net Income vs Gross Income

Whether you run a business or work for an employer, it’s good to understand the difference between gross vs net income. Understanding the difference gives you a much better understanding of your current financial situation. These terms show up when filing taxes, getting a mortgage, and applying for loans. Before Read more…

Statement of Comprehensive Income

Running a business requires you to carefully consider profits, costs, and overall accounting. The accounting and finance departments of a business have to work together closely. These departments must account for the full activities of an enterprise and do so in a simple and effective manner. One way they do Read more…