Fair value is the sale price agreed upon by a willing buyer and seller. The fair value of a stock is determined by the market where the stock is traded. F...

What are Dividends Payable? Dividends payable are dividends that a company’s board of directors has declared to be payable to its shareholders. Until such...

Realisation Account is a nominal account which is prepared at the time of dissolution of firm. It is prepared to find out the profit or loss realized by t...

Expenses: Expenses are the costs that the company has to pay in order to generate revenue. Some examples of common expenses are equipment depreciation, em...

Your Portfolio Cash may be less than you anticipated, or even negative, because: If you’ve incurred a fee on your account (e.g. your monthly subscription ...

No, premises are not a current asset. A current asset is any asset that will provide an economic value for or within one year. Premises, or the property w...

The indirect effect of a change in accounting principle reflects any changes in current or future cash flows resulting from a change in accounting princip...

Cost of financing the working capital rises because of increase in interest rates. When the inflation rate is high, it will have a direct impact on the re...

Financial accounting is a way for businesses to keep track of their operations, but also to provide a snapshot of their financial health. By providing dat...

– Retrospective — When we are required to change prior year statements. – Prospective — Adjusting the current and future estimates. Each change/correction...