Statement of changes in equity Wikipedia

Note how this statement is worksheet style, which discloses each retrospective adjustment net of tax, followed by a restatement of the equity account opening balances. Each equity account opening balance is then reconciled to its respective closing balance by reporting the changes that occurred during the year, such as the issuance/retirement of shares, net income, […]

How to reconcile petty cash

You might not be able to see the petty cash amount in the face of the balance sheet, but you could find it in the note to cash and cash equivalence. That’s usually how it works in a restaurant if your table shorts you on the check, for example. When it’s time to record expenses, […]

Understanding The Normal Balance of an Account

Sometimes revenues are substituted for COGS, and average inventory balance is used. Inventory turnover is especially important for companies that carry physical inventory and indicates how many times inventory balance is sold during the year. Moreover, maintaining proper balance in inventories allows companies to optimize cash flow management. The days inventory outstanding (DIO) measures the […]

Debits VS Credits: A Simple, Visual Guide

Keeping track of inventory is essential for any company as it affects several aspects of their business operations. For instance, if a business doesn’t have enough inventory to meet customer demand or production needs, they risk losing sales opportunities and damaging their reputation. Inventory is the collection of goods and materials that a company holds […]

Journal entry for fixed asset disposal gain loss

This ranges from the disposal of fixed assets with zero net book value, at net book value as well as the journal entry for gain or loss on disposal. The business receives cash of 4,500 for the asset, and makes a gain on disposal of 1,500. As can be seen the gain of 1,500 is […]