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[vc_row css_animation="" row_type="row" use_row_as_full_screen_section="no" type="full_width" angled_section="no" text_align="left" background_image_as_pattern="without_pattern"][vc_column][vc_column_text]What is Balance Sheet Equation?Definition: The balance sheet equation, which is also known as the accounting equation, is:Assets = Liabilities + Shareholder’s EquityThis equation can also be written as:Shareholder’s Equity = Assets – LiabilitiesOr:Liabilities = Assets – Shareholder’s EquityWhat...

[vc_row css_animation="" row_type="row" use_row_as_full_screen_section="no" type="full_width" angled_section="no" text_align="left" background_image_as_pattern="without_pattern"][vc_column][vc_column_text]What is a Bank Reconciliation?Definition: A bank reconciliation matches a company’s cash balance in its books of accounts with the balance in its bank statement. The exercise may reveal that it is necessary to make certain entries in the...

What is a Bond Indenture? Definition: A bond indenture is a legal document that lays down the terms and conditions associated with the issue of bonds by a company. It becomes a crucial document if the issuer faces financial difficulties and is unable to meet its commitment...

What is Book Value of Equity? Definition: The book value of equity of a company is the difference between its total assets and its total liabilities. It’s the value derived from a company’s books or financial statements. What does Book Value of Equity mean? In a company, the book...

What is Break Even Point? Definition: Break even point is the production level at which a company recovers all its costs. At this volume of output, revenues equal costs, both variable and fixed. If it is possible to increase the level of production beyond this point, the...

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