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Accounting Articles

December 28, 2015

What is a flexible budget? When would management prepare and use a flexible budget? In this article, we will look for answers to these questions.

July 23, 2015

In many business areas intellectual property developed by a company or individual is licensed to another party under royalty agreements. The article below describes what royalties are and provides general rules for accounting for royalty arrangements.

May 7, 2015

In the highly competitive market conditions enterprises are forced to increase their profitability. In this article we will review the impact of inventory on financial results of a company

April 5, 2015

History of accounting standards has had several interactions of rules related to accounting for goodwill. Goodwill is a premium paid for a company over its assets and liabilities. There are situations, however, when a buyer pays less than what the assets and liabilities of the company are worth. This creates a bargain purchase.

March 14, 2015

Under US GAAP, the cash flow statement can be prepared using either an indirect or a direct method. In this article, we will compare those two methods.

March 1, 2015

In this article, we’ll briefly describe how to account for stock warrants, which can be detached from a bond and exchanged for common stock – almost like a coupon

November 10, 2014

Accounting for investments may be challenging and complex. In this article, we will provide an overview of methods of accounting for investments.

October 5, 2014

You’re probably familiar with cash and stock dividends. What you may not know is that there are a few additional types of dividends that can be declared for stockholders. In this article, we’ll touch on property dividends, scrip dividends, and DRIP arrangements.

September 21, 2014

In this article, we’ll cover appropriation, a process by which the board of directors lets shareholders know that funds have been internally restricted.

September 14, 2014

Depreciation might sound simple in theory - the company buys a fixed asset and then writes off the cost over a period of time. But what if a company has hundreds or thousands of depreciable assets, each with its own cost, salvage value, and useful life? What if a particular machine has several dozen separate parts that must be replaced at different times? Situations like this call for specialized methods of depreciation.

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Accounting Categories
Accounting categories represent a collection of accounting guides and answers related to one accounting area.