Accounting articles

What is a contra asset account?

What is a contra asset account?In the double-entry system, transactions are recorded in terms of debits and credits. Since a debit in one account offsets a credit in another, the sum of all debits must equal the sum of all credits. The double-entry s... Read more

Exponential Functions: Compound Interest

Exponential Functions: Compound InterestPooling together its members money is how banks and other lenders provide loans to borrowers, among other banking activities. We pay interest on credit card purchases and loans, and we earn interest on our savi... Read more

Comparability Principle

Comparability PrincipleAnd, this means the auditor finds no issues with matching, materiality, "historical costs," or any other GAAP-defined accounting principle. And, this outcome means the auditor finds no problems with matching, materiality, histo... Read more

Dividend Per Share

Dividend Per ShareThis naturally means that a company that pays dividends has been through the major growth phase and gotten to the point where they can pay out at least some of their earnings to their shareholders. Given this, there is an element of... Read more

Is land a current asset? — AccountingTools

Is land a current asset? — AccountingToolsUsing a par value of $1 a share, calculate the total par value by taking the 5 million shares issued multiplied by $1 for a total par value of $5 million. The common stock will be recorded at the par value, o... Read more