Statements
Understand the income statement, also known as the profit and loss statement. Learn the key income statement components, calculate gross profit formula, operating income, and net income. Compare the income statement vs balance sheet and review real-world examples.
Equity & Capital
Understand what are options in trading, the core types of options contracts like call options and put options, and how intrinsic value options are calculated. Learn the difference between American and European options styles to build effective options trading strategies.
Equity & Capital
Discover what is preferred stock, a unique hybrid security. Analyze preferred stock advantages and disadvantages for investors and companies. Learn why companies issue preferred stock and the risks, including the downside of preferred stock and features of cumulative preferred stock.
Equity & Capital
Demystify common stock and shareholders equity. Learn how to record common stock journal entries for stock issuance and master key calculations like how to calculate shares outstanding and calculating book value per share, transforming complex finance into clear steps.
Expenses
Supplies expense is a critical expense account. Learn what is supplies expense in accounting, how to differentiate expense vs asset, and the steps for creating the supplies expense journal entry and adjusting journal entries for supplies.
Financial Health
Financial leverage amplifies outcomes. Understand the leverage ratio and risks of financial leverage to optimize your capital structure. Use leverage for business growth wisely with effective financial risk management strategies and real-world examples.
Statements
Decipher the complex differences between IFRS vs GAAP income statement requirements. We detail the IFRS income statement format, software revenue recognition GAAP rules, and the use of non-GAAP financial measures to ensure accurate financial reporting.
Equity & Capital
Understand the critical gaap and ifrs differences affecting the retained earnings statement. Learn what is statement of retained earnings, why these accounting standards diverge, and the importance of retained earnings for global financial reporting standards.
Bookkeeping
Understand prepaid rent classification and why it is a current asset. This guide details the correct accounting for prepaid rent, including essential prepaid rent journal entries and monthly adjusting entries for prepaid expenses.
Assets
Understand accumulated depreciation in accounting. Learn where is accumulated depreciation on the balance sheet, how this contra asset affects net book value, and the key difference between accumulated depreciation vs depreciation expense. Master these crucial balance sheet components today.
Assets
Is accumulated depreciation an asset? No. Understand the fixed assets definition accounting uses and why accumulated depreciation is a contra-asset account. Learn the difference between accumulated depreciation vs depreciation expense and its role on the balance sheet.
Bookkeeping
Understand what are prepaid expenses in accounting and why they appear as current assets on the balance sheet. Learn how to record journal entries for prepaid expenses and apply prepaid expenses adjusting entries using the matching principle.
