To better visualize debits and credits in various financial statement line items, T-Accounts are commonly used. Debits are presented on the left-hand side of the T-account, whereas credits are presented on the right. Included below are the main financial statement line items presented as T-accounts, showing their normal balances. The basic components of even the […]

On the other hand, the number of shares outstanding almost always remains the same. That number is constant unless a company pursues specific corporate actions. Therefore, market value changes nearly always occur because of per-share price changes. Free Accounting Courses In this case, the value of the assets should be reduced by the size of […]

Compensation may factor into how and where products appear on our platform (and in what order). But since we generally make money when you find an offer you like and get, we try to show you offers we think are a good match for you. That’s why we provide features like your Approval Odds and […]

To illustrate how these three dates relate to an actual situation, assume the board of directors of the Allen Corporation declared a cash dividend on May 5, (date of declaration). The cash dividend declared is $1.25 per share to stockholders of record on  July 1, (date of record), payable on July 10, (date of payment). To record the […]

The budgeted balance sheet gives the ending balances of the asset, liability, and equity accounts if budgeting plans hold true during the budgeting time period. A strategic plan usually forms the basis for an organization’s various budgets, which all come together in the master budget. It usually coincides with the fiscal year of the firm […]