Learn why cash flow statements are essential for business survival, how they track liquidity and solvency, and key strategies for financial management.

General accepted accounting principles (GAAP) recommend that businesses use an accrual method of accounting. This means that the income statement reflects expenses and income earned but not yet ...

Learn what every business owner needs to know about financial accounting, accounting software and financial statements.

Small-business owners and their creditors are wise to pay careful attention to the three major financial statements: the balance sheet, income statement and statement of cash flow. Managers have some ...

Over a span of what is now quite a few years, the two of us have been privileged to be academic accountants. Part of the job description requires us to think a lot about ideas that practitioners don’t ...

Cash basis accounting records when cash actually changes hands in a transaction, providing a real-time view of your financial position that reflects the actual cash flow of a business or individual.

Ever since we uncovered and articulated the paradigm that we call Quality Financial Reporting, we have been committed to advocating a new attitude among managers. We have asserted that they will soon ...

Organizations should consider using a cash-flow method of accounting, recording only income and expenses that are received and paid and setting aside “any transactions that do not involve cash, such ...

(Session 11): Furnish, as a separate exhibit of your starting balance sheet and projected income statements for the first six months to one year. (Session 11): Provide a separate exhibit of your one ...

When accounting and economics collide … watch out! A case in point deals with the use of interest rate swaps by bank asset/liability managers. Interest rate swaps are primarily used to transform ...

Despite three dividend cuts in recent years, more dividend cuts are inevitable, in my opinion, due to negative operating cash flow and cash Distributable Earnings not covering the dividend. Recent ...