The most comprehensive educational resources for finance

Role of Controller in Protection of Assets

In a business, a financial controller is an accounting/audit expert that overseas accounting and implements internal control measures. The person in this role is also sometimes called the comptroller. One of the responsibilities of the controller is to protect assets by adequately insure and maintain them and at the same time avoid unnecessary risk. The

Why do companies manipulate their financial reports?

Financial reports are to companies what an annual report of health is to a person. Investors, lenders, and prospective key customers go through a company’s financial reports before they associate with them. Employees of a company are incentivised based on how much profits a company makes. It is therefore quite natural that companies have a

4 Jobs for the Mathmatically-Minded Individual with an Accounting Degree

If your love of math inspired you to get an accounting degree, then you should put your love of numbers to good use. There are dozens of high-paying, interesting, and challenging opportunities available for accounting majors, because your mathematical talents are special. Don’t box yourself in when you’re looking for a job, remember that fun

Significance of Cash Flows

If a company has a high demand for its product, the product has high margins, makes purchases and pays on time, shows an increasing trend in profits, the business is a hit, right? Well, not always. In most businesses cash is used to buy raw materials, produce value added goods, buy assets and turn it

Cash Flow Statements – Direct and Indirect Method

A cash flow statement can be presented using two methods: Indirect Method Direct Method The two methods differ in terms of how the cash flow from operating activities is calculated. In the indirect method, the operating cash flows are not directly reported. Instead you start with the net income taken from the income statement and

Cash Flow Statement

Cash Flow is indicative of a company’s financial health. Problems in cash flow may point to issues in product pricing, operating efficiency and credit policy. Statements of cash flow give an indication of what needs to be rectified and realigned. Below is the Statement of Cash Flow of Innovative Products Inc. Cash Flow by Activity

Income Statement

A lot of things hinge on a company’s profit. Profits determine bonuses, dividends to shareholders, timely repayments to banks and an important measure to attract investors. To understand an income statement better, let us take a look at the income statement of Innovative Products Inc. As you can see, the income statement of Innovative Products

Elements of Balance Sheet

Balance sheet is one of the most important financial statements. To understand a balance sheet better, let us take a look at the elements of their balance sheet. As you can see, the balance sheet shows all assets on top, and then all liabilities and shareholder’s equity below the assets. This style of presentation is

Elements of Financial Statements

Though it is said organizations have an indefinite life, in reality they do have a particular life cycle. These are birth, growth, plateau and finally no growth or decline. This is not unlike a product life cycle. In periods of slow growth, product extensions are introduced to increase its life span. Similarly, companies need to

Accounting Case Study – General Ledger and Trial Balance

We had started our case study for explaining accounting concepts. You can view the case study introduction at the following link: Accounting Skills – Case Study For journal entries visit: Accounting Case Study – Journal Entries In this part, we present the General Ledgers prepared for the transactions at Web Design Inc. At the end,