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

Balance Sheet: Accounts, Examples, and Equation

The balance sheet is a type of financial statement that gives a report of the financial activities of a company at a particular point in time during an accounting period; a balance sheet shows a summary of the assets, liabilities, equity, and other financial activities of a company at any accounting period, hence the balance … Read more