Accounting Category: Income statement

Accounting Articles

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.

How should you account for a revision in the useful life of fixed assets? What financial statement impact does such revision have? Find answers to these questions in this article.

Learn about discretionary costs, view examples of such costs, and understand instances where discretionary costs may be changed to manage earnings.

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 about quality of earnings in accounting.

Learn about the total cost concept, one of the cost-plus pricing methods in managerial accounting.

Learn about accounting for short-term investments: trading securities and available-for-sale securities.

Learn about three methods to recognize expenses: association of cause and effect, systematic and rational allocation, and immediate recognition.

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