September 29, 2020
Charles Lutwidge
Income Summary Account
Accounting requires all accounts to be balanced in such a way that there is no unrecorded amount of money left over when accessing the books. This requires following the rules for debits and credits, depending through which account the money...
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September 28, 2020
Charles Lutwidge
Statement of Stockholders Equity
Definition Equity is the residual interest in the assets of a business after deducting all of its liabilities. It represents the claims of the owners on the assets of the company. Equity capital includes funds directly invested in the company...
September 27, 2020
Charles Lutwidge
Cash Flow from Operating Activities
Company executives are interested in financial security and business stability, which is largely determined by the generated cash flow. In the course of its activities, an enterprise or company generates various cash flows. They can have a different focus –...
September 26, 2020
Charles Lutwidge
Balance Sheet Template and Structure
Balance sheet – What is it? Everything in business, as in life, must be balanced. However, in business, this means something else. Even if you are not an accountant, you probably have heard about a Balance sheet as a thing...
September 25, 2020
Charles Lutwidge
Cash Short and Over Account
Overview Cash includes coin, paper money, checks, and money orders. Money on deposit with a bank and other financial institutions that are available for withdrawal is also considered cash. Cash is the asset most likely to be stolen or used...
September 25, 2020
Charles Lutwidge
Dividends Account – Explanation and Example
Definition Every once in awhile, a company may decide to distribute some of its earnings to its stockholders/shareholders. In financial accounting, they are referred to as dividends. They can happen frequently, such as every quarter, or a corporation may decide...
September 25, 2020
Charles Lutwidge
What is a Trial Balance?
Definition By definition, a Trial Balance is not a formal financial statement. It is merely the ledger accounts listed along with their respective closing debit or credit (normal) balances on a certain date. Other financial statements are usually prepared after...
September 02, 2020
Charles Lutwidge
Manufacturing Overhead Costs
Any business activity involves costs. Money is spent on diverse processes and purchases: equipment maintenance, raw materials, packaging, transportation, etc. Three are also costs associated with management processes, where wages and salaries are a big percentage of these spendings. Such...
