Equity is owners’ investment in a company. Stockholders’ equity equals assets minus liabilities and it appears on the balance sheet. What is Equity? Equity appears on a company’s balance sheet. As equity increases, the value of the owners’ investment increases.…
What is a Liability? In accounting, a liability is debt owed to company or individual. Liabilities are a claim on a company’s assets by the creditors. Liabilities require a payment of assets, such as cash, or a performance of a…
In accounting, an asset is a resource owned by a company or entity. Assets provide probable future economic benefits. These benefits include increasing sales or cash flow or reducing expenses. What is an Asset? Assets appear on a company’s balance…
The conceptual framework shows the basic objectives of financial reporting. It also describes the financial reporting elements and concepts. The conceptual framework of generally accepted accounting principles is set by the Financial Accounting Standards Board (FASB). This is Intermediate Accounting…
Generally accepted accounting principles (GAAP) are the accounting standards in the U.S. IFRS are the international accounting standards. IFRS are the International Financial Reporting Standards. Chapter 1: Financial Accounting and Accounting Standards This is Intermediate Accounting Chapter 1. For more…