Types of preferred stocks

There are different types of preferred stocks that can be issued by companies and purchased by investors. These stocks are mainly issued by companies who do not want to dilute control but want to raise funds from investors. We shall look at the various types of preferred stocks hereafter but first, let us understand the … Read more

Is preferred stock an asset?

Is preferred stock an asset? This question has been asked severally by investors who are considering if investing in preferred stock will prove beneficial and add to the growth of their stock portfolio as well as their income. Preferred stock is a type of stock issued by companies that can be bought by investors on … Read more

Is accounts receivable an asset?

Is accounts receivable an asset? Companies provide goods and services to customers sometimes on credit. When a seller company does this, the customers owe the company a certain amount of cash for the goods and services provided. This money owed is referred to as accounts receivable. Is accounts receivable an asset?; being that it is … Read more

Revenue: Debit or Credit?

Is revenue debit or credit? Revenue in accounting is the total amount of income realized from the sale of goods and services related to the primary operations of the business. In business, revenue is responsible for an increase in equity and the normal balance for the business’s equity is a credit balance. Therefore, revenue has … Read more

Liabilities vs Assets Differences and Similarities

Liabilities and assets usually appear together in business terms. These items make up the components of the balance sheet of a company and are the fundamental elements that shape the financial health of a business. A company’s balance sheet is divided into two categories which are assets on the left and liabilities and equity on … Read more

Accumulated Depreciation on Balance Sheet

Accumulated depreciation on balance sheet reflects the total decrease in the value of an asset over time. The values of all assets of any type are reported on the balance sheet with the accumulated depreciation recorded over the years of useful life. One can find accumulated depreciation on balance sheet presented just below the related … Read more

Assets, Liabilities, Equity: Comparison

Assets, liabilities, and equity are important terms when it comes to operating a company and understanding its financial standing. A company’s balance sheet is its financial statement that summarizes its assets, liabilities, equity, and other activities related to the company’s finance. One equation that shows the relationship between assets, liabilities, and equity is the accounting … Read more

Types of Options

There are different types of options with various criteria for classification. An option is a financial derivative that confers on its recipient the right to buy the underlying at a specified price, in a particular quantity, within a stipulated time frame. Here, the various types of options will be discussed; but before we do that, … Read more

Stock Options vs RSA Differences and Similarities

Stock options and restricted stocks are forms of employee equity compensation given by employers. With these compensations, employees gain a stake in their companies and get the opportunity to hold partial ownership of the business and its profits. Stock options as well as the two types of restricted stocks (RSA and RSU) are generally the … Read more

RSU Taxes: How are RSUs taxed?

How are RSUs taxed? The taxes on RSU is different from other forms of equity compensation like stock options. When it comes to RSU taxes, there is no immediate tax liability when a restricted stock unit is awarded. The RSU tax treatment is only applicable when vested and the recipients receive the actual payout of … Read more