Accounting Tools

OCTOBER 19, 2023

What are Unaudited Financial Statements? An unaudited statement is a financial statement that has been prepared by an auditor , but for which a standard set of audit procedures have not been performed. In addition, the statement must be labeled as unaudited.

Financial Statements 40

Financial Statements Auditing Accounting Accounting 40

Accounting Tools

JULY 17, 2023

Related Courses Business Combinations and Consolidations What are Group Financial Statements? Group financial statements are financial statements that include the financial information for more than one component.

Financial Statements 40

Financial Statements Accounting Accounting 40

Accounting Tools

APRIL 26, 2023

Related Courses How to Conduct an Audit Engagement The Interpretation of Financial Statements What is a Certified Financial Statement? A certified financial statement is an income statement , balance sheet , and/or statement of cash flows that is issued along with an auditor’s report from a certified public accountant.

Financial Statements 40

Financial Statements Auditing Accounting Accounting 40

Accounting Tools

APRIL 24, 2023

Related Courses Business Combinations and Consolidations What is a Combined Financial Statement? A combined financial statement presents the financial results and financial positions of at least two affiliated companies. Thus, consolidated statements are more inclusive than combined statements.

Financial Statements 40

Financial Statements 40

Accounting Tools

APRIL 14, 2023

Related Courses Budgeting Financial Forecasting and Modeling What are Projected Financial Statements? Projected financial statements incorporate current trends and expectations to arrive at a financial picture that management believes it can attain as of a future date.

Financial Statements 40

Financial Statements Budgeting 40

Accounting Tools

MAY 1, 2023

Related Courses The Balance Sheet The Income Statement The Statement of Cash Flows What is a Special-Purpose Financial Statement? A special-purpose financial statement is a financial report that is intended for presentation to a limited group of users.

Financial Statements 40

Financial Statements Financial Reporting Tax 40

Accounting Tools

MAY 13, 2024

It is used when there is not definitive guidance in the accounting standards that govern a specific situation. This can result in material levels of misstatement in a reporting entity’s financial statements. What is an Accounting Convention?

Accounting 75

Accounting Accounting Financial Statements Bookkeeping 75

Accounting Tools

OCTOBER 8, 2023

The key element in the preceding definition is intent. A company could make false representations in its financial statements simply because the accounting staff made a mistake in compiling certain financial information.

Financial Statements 75

Financial Statements Auditing Accounting Accounting 75

Accounting Tools

MARCH 19, 2024

An alternative definition of capital stock is that it is comprised of the total number of common shares and preferred shares that are authorized for issuance. What is Capital Stock? Capital stock is comprised of all types of shares issued by a corporation. This amount may be substantially larger than the number of shares actually issued.

Corporate Finance 40

Corporate Finance Financial Statements Accounting Accounting 40

Accounting Tools

MAY 10, 2024

A material misstatement is information in the financial statements that is sufficiently incorrect that it may impact the economic decisions of someone relying on those statements. A presentation of a financial statement line item or account that does not comply with the applicable accounting framework.

Financial Statements 40

Financial Statements Auditing Collections Accounting 40

Accounting Tools

APRIL 26, 2023

A misstatement is the difference between the required amount, classification, presentation, or disclosure of a financial statement line item and what is actually reported in order to achieve a fair presentation, as per the applicable accounting framework.

Financial Statements 40

Financial Statements Auditing Accounting Accounting 40

Accounting Tools

JANUARY 2, 2024

More commonly, accounting reports are considered to be equivalent to the financial statements. These statements include the following reports: Income Statement The income statement states the sales earned during a period, less expenses, to arrive at a profit or loss.

Financial Statements 75

Financial Statements Accounting Accounting Budgeting 75

Accounting Tools

MAY 16, 2024

The report release date is the date on which an auditor allows a client to use the auditor's report as an accompaniment to the client's financial statements.

Financial Statements 40

Financial Statements Auditing Accounting Accounting 40

Accounting Tools

MAY 10, 2024

A post balance sheet event is something that occurs after a reporting period , but before the financial statements for that period have been issued or are available to be issued. Examples of situations calling for the adjustment of financial statements are: Lawsuit.

Financial Statements 40

Financial Statements Collections Invoicing Accounting 40

Accounting Tools

APRIL 24, 2024

A reporting period is the span of time covered by a set of financial statements. Organizations use the same reporting periods from year to year, so that their financial statements can be compared to the ones produced for prior years. What is a Reporting Period? It is typically either for a month, quarter, or year.

Financial Statements 71

Financial Statements Financial Analysis Financial Reporting Bookkeeping 71

Accounting Tools

MAY 7, 2024

Inflation accounting is the process used to factor massive price increases into an organization’s financial statements. What is Inflation Accounting? However, these adjustments are not allowed if the relevant economy is not classified as highly inflationary.

Financial Statements 40

Financial Statements Accounting Accounting Tax 40

Accounting Tools

MAY 9, 2024

Management's discussion and analysis is part of the disclosures section of the financial statements , in which prior period performance and projected results are discussed. It is not a required part of the financial statements of privately-held entities. What is Management’s Discussion and Analysis? Not explanatory.

Financial Statements 40

Financial Statements Financial Reporting Accounting Accounting 40

Accounting Tools

APRIL 24, 2024

The concept is used when the financial statements for multiple periods are being presented. With the retrospective application of accounting principles, the information presented in multi-period financial statements is more comparable.

Financial Statements 40

Financial Statements Accounting Accounting 40

Accounting Tools

APRIL 24, 2024

Faithful representation is the concept that financial statements be produced that accurately reflect the condition of a business. The faithful representation concept should extend to all parts of the financial statements, including the results of operations, financial position , and cash flows of the reporting entity.

Financial Statements 40

Financial Statements Financial Reporting Bookkeeping Accounts Receivable 40

Accounting Tools

APRIL 7, 2024

Accounting standards are intended for this audience, so that organizations release financial statements that are consistently formulated across entire industries, making it easier for external users to rely upon the presented information. Related Article Internal Users of Accounting Information

Financial Statements 40

Financial Statements Billing Accounting Accounting 40

Accounting Tools

MAY 15, 2024

It is quite common for retrospective application situations to result in the restatement of financial statements from prior periods. Whether an accounting change is to be dealt with on a prospective or retrospective basis is up to the guidelines included in the applicable accounting standard.

Financial Statements 40

Financial Statements Accounting Accounting 40

Accounting Tools

AUGUST 7, 2023

A subsequent event is an event that occurs after a reporting period, but before the financial statements for that period have been issued or are available to be issued. Depending on the situation, such events may or may not require disclosure in an organization's financial statements.

Financial Statements 75

Financial Statements Collections Invoicing Accounting 75

Accounting Tools

NOVEMBER 24, 2023

Auditors are particularly watchful for contingent assets that have been recorded in a company's accounting records , and will insist that they be eliminated from the records before issuing an auditor’s opinion on its financial statements. This means that contingent liabilities are more likely to be recorded than contingent assets.

Financial Statements 76

Financial Statements Bookkeeping Accounting Accounting 76

Accounting Tools

MARCH 22, 2024

Comparability is the level of standardization of accounting information that allows the financial statements of multiple organizations to be compared to each other. This approach is needed to ensure consistency in the formulation of financial statements.

Financial Statements 40

Financial Statements Financial Reporting Accounting Accounting 40

Accounting Tools

APRIL 29, 2024

Related AccountingTools Courses The Balance Sheet The Interpretation of Financial Statements Related Articles Accounting for Debt Issuance Costs Debt Accounting How to Record a Loan Payment that Includes Interest and Principal Troubled Debt Restructuring Accounting

Financial Statements 75

Financial Statements Accounts Payable Accounts Payable Billing 75

Accounting Tools

MARCH 1, 2024

Examples of temporary differences are: Revenues or gains that are taxable either prior to or after they are recognized in the financial statements. Expenses or losses that are tax deductible either prior to or after they are recognized in the financial statements.

Tax 75

Tax Accounting Accounting Financial Statements 75

Accounting Tools

JULY 14, 2023

An adverse opinion is a statement made by an entity’s outside auditor , that the entity’s financial statements do not fairly represent its results, financial position , and cash flows. It may also result in the firing of a firm’s CFO and controller , since they are responsible for the financial statements.

Financial Statements 75

Financial Statements Auditing Accounting Accounting 75

Accounting Tools

MARCH 29, 2024

This information is recorded in the balance sheet , which is one of the financial statements. The financial position of an organization is stated in the balance sheet as of the date noted in the header of the report. Related AccountingTools Course The Balance Sheet The Interpretation of Financial Statements

Financial Statements 40

Financial Statements Accounting Accounting 40

Accounting Tools

MAY 15, 2024

Related AccountingTools Course The Interpretation of Financial Statements Conversely, you could report strong top line revenue growth and yet still go out of business, if those sales do not translate into profits.

Financial Statements 40

Financial Statements 40

Accounting Tools

MARCH 26, 2024

Information is considered to be material when its absence would have an effect on the decisions of the users of financial statements. Items are considered to be material when they have an excessive impact on reported profits , or on individual line items within the financial statements.

Financial Statements 40

Financial Statements Accounting Accounting 40

Accounting Tools

NOVEMBER 3, 2023

Substance over form is the concept that the financial statements and accompanying disclosures of a business should reflect the underlying realities of accounting transactions. Conversely, the information appearing in the financial statements should not merely comply with the legal form in which they appear.

Financial Statements 75

Financial Statements Financial Reporting Bookkeeping Billing 75

Accounting Tools

OCTOBER 23, 2023

Financial Statements The bookkeeper may prepare preliminary financial statements , but may rely upon an accountant to produce the final statements. The bookkeeper also prepares paychecks for employees, and remits payroll taxes to the government.

Bookkeeping 75

Bookkeeping Financial Statements Payroll Deposits 75

Accounting Tools

SEPTEMBER 25, 2023

Related Courses The Income Statement The Interpretation of Financial Statements What are Earnings? Thus, there is a definite pattern to the timing of earnings generation over the life of a business. Earnings are the profits generated by a business.

Financial Statements 40

Financial Statements Tax Invoicing 40

Accounting Tools

OCTOBER 21, 2023

An accounting period is the span of time covered by a set of financial statements. This period defines the time range over which business transactions are accumulated into financial statements. For internal financial reporting, an accounting period is generally considered to be one month.

Financial Statements 75

Financial Statements Accounting Accounting Financial Reporting 75

Accounting Tools

MAY 16, 2024

Thus, an entity may report a tax loss at the same time that it reports a profit on its financial statements under generally accepted accounting principles or international financial reporting standards.

Tax 40

Tax Financial Statements Financial Reporting Accounting 40

Accounting Tools

APRIL 9, 2024

Related AccountingTools Courses The Balance Sheet The Interpretation of Financial Statements Related Article Other Current Assets If a seller has issued billings to customers with payment terms that are still more than one year in the future, then they are classified as Other Assets.

Deposits 75

Deposits Financial Statements Billing Tax 75

Accounting Tools

FEBRUARY 13, 2024

Materiality is the threshold above which missing or incorrect information in financial statements is considered to have an impact on the decision making of users. Materiality is sometimes construed in terms of net impact on reported profits , or the percentage or dollar change in a specific line item in the financial statements.

Financial Statements 40

Financial Statements Accounting Accounting 40