Let us take an arbitrary example of company A to find out how to calculate the number of outstanding shares of the company. We will also try to understand what authorized shares, issued shares, and treasury stocks mean. For example, suppose the number of authorized shares for a company is 5000 shares. The common stock on […]

You may need to have your accountant help you with this type of transaction. Accruals stand for revenues and expenses not yet received or paid, nor recorded in an accounting transaction. A fixed asset is a tangible/physical item owned by a business that is relatively expensive and has a permanent or long life—more than one […]

Because preferred shares are often compared with bonds and other debt instruments, let’s look at their similarities and differences. The payout ratio for the preferred dividends isn’t the only important metric. I would obviously also like the balance sheet to remain sufficiently strong to avoid capital losses. As you can see below, the total amount […]

Therefore, the monthly charge of insurance for Abdul Co. amounts to $200. This implies that only the current charge is going to be recorded as an expense in the Income Statement. Anything that is owed by, or owed to the organization is subsequently declared in the Balance Sheet. For example, because of recent legal issues, […]

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When we try to go deep into this area, various new concepts come to mind, and we are not very familiar with those concepts. Stock splits and stock dividends are also two of those topics in which we are often confused. The stock market is one of the most complex places in the economy. So […]

Our team of ecommerce-accounting experts can handle the complexity while you focus on what you do best – building your business. For information on how to set up your chart of accounts, watch this video – Setting Up Chart of Accounts in QuickBooks Online | For Online operating margin formula with calculator Sellers. If you […]

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Christina founded her own accounting consultancy and managed it for more than six years. She co-developed an online DIY tax-preparation product, serving as chief operating officer for seven years. She is the current treasurer of the National Association of Computerized Tax Processors and holds a bachelor’s in business administration/accounting from Baker College and an MBA […]