Expenses
Understand the role of expenses in financial statement components. Learn accurate expense classification and the difference between expenses and assets, liabilities, and equity. Discover why expenses live on the income statement, not the balance sheet.
Assets
Learn the essential steps for proper accounting for asset disposal. This guide breaks down the fixed asset sale journal entry, explains what is gain on sale, and provides clear examples for both gains and loss on sale accounting.
Assets
Land is a crucial long-term asset classification in accounting. Discover the specific accounting treatment of land, understand double entry accounting rules, and review essential debit and credit examples for recording land purchase and sale transactions accurately.
Expenses
Confused about accounting for salaries? Discover why salaries expense is a debit. We detail the journal entry for salaries expense and explain the critical difference between cash vs accrual accounting methods for accurate salaries accounting.
Revenue
Understand when to recognize revenue GAAP requires using the accrual method. This guide breaks down ASC 606, the five-step revenue recognition process, and the crucial difference between accrued revenue and deferred revenue.
Financial Health
Understand crucial debt ratios like the debt to asset ratio and debt-to-EBITDA ratio. Use the debt to asset ratio formula and industry benchmarks (debt to asset ratio by industry) for accurate financial ratio interpretation and strong debt coverage management.
Equity & Capital
The equity multiplier is a vital financial leverage ratio revealing a company's capital structure and reliance on debt vs equity financing. Learn the equity multiplier formula, its interpretation, and its critical role in Dupont analysis for assessing financial risk.
Equity & Capital
Learn the dividend yield calculation formula and how to calculate dividend yield accurately. Compare TTM vs forward dividend yield, understand high dividend yield risks, and determine what is a good dividend yield for your portfolio.
Equity & Capital
Discover how to calculate intrinsic value of a stock using powerful stock valuation formulas. Compare absolute valuation vs relative valuation methods, including the discounted cash flow, dividend discount model, and residual income model, to identify truly undervalued stocks.
Financial Health
Unlock financial stability and wealth creation by applying the core principles of finance. Learn essential budgeting, cash flow management, and debt repayment strategies, while harnessing the power of compounding through smart investing.
Financial Health
Understand how to measure market efficiency using key tools like the Sharpe Ratio and event study methodology. Learn to calculate risk-adjusted returns and identify arbitrage opportunities to refine your investment strategies and asset valuation.
Equity & Capital
Understand how do share buybacks work and their effect on earnings per share. Explore the key advantages of share buyback, the risks (disadvantages of share repurchase), and the role of treasury stock in corporate finance.
