What Is the Accounting Equation?

If you generate a balance sheet report that does not equal zero, there may be an error in the ledger transactions. Understanding where to look can help you isolate the error and correct it to produce accurate reports. Investors can use the accounts payable turnover ratio to determine if a company has enough cash or […]

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What Businesses Are Exempt From a 1099?

What to Do with the Information Returns Financial institutions are required to file this form if they pay you more than $10 in interest during the year. What is the difference between other income and nonemployee compensation on a 1099? Generally, any amounts in Box 3 of the Form 1099-MISC are reported as Other Income […]

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Financial statement review — AccountingTools

Notice how the heading of the balance sheet differs from the headings on the income statement and statement of retained earnings. A balance sheet is like a photograph; it captures the financial position of a company at a particular point in time. As you study about the assets, liabilities, and stockholders’ equity contained in a […]

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