Accrual accounting is the counterpart to cash accounting, and the accrual method puts expenses and revenues on the books as soon as they are contractually agreed-upon.
Accrual accounting is required by GAAP conventions for all publicly traded companies who have over $5 million in annual revenues. This method is the counterpart to cash accounting, which may be more useful to smaller businesses.
In accrual accounting, the expenses and revenues which are agreed upon are written onto the business’s ledger at the current time, regardless of when payment will actually settle on the transaction. When a sale is made or service is performed, the revenue from the activity is documented, even if no cash is received in the current period.
Balances reported at the end of the period include values that may not be reflected in actual cash received or paid out. In cash accounting, only real cash flows are documented at the time that cash changes hands.
Venture capitalists are now helping newer companies achieve success in return for large equity positions in the business
SEP IRAs do not have to be established until taxes are filed for the year, and it can be done quickly
The Symmetrical Triangle Bottom pattern forms when a stock’s price fails to retest a high or a low and forms two trends
The Broadening Wedge Ascending pattern forms when a currency pair price progressively makes higher highs and higher lows
An adjunct account increases the valuation of a liability account. It is commonly used for a bond issue sold at a premium
Chapter 9 is a form of bankruptcy filing that is reserved for municipalities which have defaulted on their debt
Financial stocks are those that make up the financial sector, which encompasses banks, lenders, wire houses, and others
Naked shorting means that the seller has not located or secured the security being short sold, and is in many cases illegal
Large institutional investors sometimes trade on “Electronic Trading Crossing Networks,” without publicly exposing them
One way of classifying mutual funds is by the market capitalizations of the companies they invest in. Mutual Funds...