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.

Financial management is a risky business - predictions of future performance are prone to the effects of an ever-changing economic environment. Discounting predicted cash flows is one method a financial manager can use to account for the risks associated with forecasting performance.

Par value and no par value stocks exist and accounting for them may be different. In this article, we will review par value of stock, watered stock and sample journal entries to account for issuing stocks.

Fraud related to pocketing cash is not uncommon. One of the ways to steal cash used by fraud perpetrators is lapping schemes. In this article, we review how lapping schemes work and how they can be limited or prevented in your company.

Do you normally just look at the net income of a company? Do you analyze the company's cash flows from operations? See how the two are connected in this article discussing the quality of income.

What do investing and financing activities and related cash flows represent? How are they different? Why are non-cash activities presented as part of the cash flow statement? Answers to these questions are available in this article.

Does operating income equal operating cash flows? Is it good when there are negative cash flows? Answers to these and other questions are in this accounting article.

Learn about debt covenants and their classification (positive and negative, capital and performance). Understand actions when debt covenants are violated, including financial reporting implications. Review an example of debt covenants involving interest coverage ratio and fixed charge coverage ratio.

Learn accounting for common stock issuance. Examples of common stock issued for cash and for non-cash consideration with journal entries are provided.

Learn about incentive compensation types and accounting entries for cash bonuses.