Author: Beena Wilson

Deferred revenue, also known as unearned revenue or deferred income, represents money that a company has received in advance for goods or services that it has not yet delivered. It’s a liability on the balance sheet because the company still owes the customer the product or service for which it has been paid. Here’s a… Continue reading Deferred Revenue

Retained earnings represent the accumulated net profits or losses of a company over time that have not been distributed as dividends to shareholders. It’s a component of the shareholders’ equity on the balance sheet and reflects the company’s ability to reinvest its profits for future growth. The formula for retained earnings is quite straightforward: Retained Earnings=Beginning Retained Earnings+Net Income (or Loss)−DividendsRetained Earnings=Beginning Retained Earnings+Net Income (or Loss)−Dividends… Continue reading Retained Earnings

Realized gain or loss refers to the profit or loss that is actually incurred when an investment is sold or otherwise disposed of. It contrasts with unrealized gain or loss, which is the potential profit or loss on paper, based on the current market value of an investment. Here’s how to calculate realized gain or… Continue reading Realized Gain/Loss

Interest on receivables, also known as receivable interest or late payment interest, refers to the additional amount charged or earned when a customer or client delays payment for goods or services beyond the agreed-upon payment terms. In business transactions, it’s common for companies to provide credit terms to their customers, allowing them a certain period… Continue reading Interest on Receivable

Nonprofit accounting is a specialized branch of accounting that focuses on the unique financial reporting and management needs of nonprofit organizations, such as charities, foundations, religious organizations, and social service organizations. While many accounting principles apply to both for-profit and nonprofit entities, there are specific accounting practices and standards tailored to the nonprofit sector. Here… Continue reading Nonprofit Accounting

Adjusting entries are accounting entries made at the end of an accounting period (typically monthly, quarterly, or annually) to ensure that the financial statements accurately reflect a company’s financial position and performance. These entries are necessary because not all financial transactions are recorded in real time. Adjusting entries fall into two main categories: Accruals: Accrued… Continue reading Adjusting Entries

Credit and debt management are critical aspects of personal finance. Effectively managing your credit and debt can have a significant impact on your financial well-being. Here are the key components of credit and debt management: Understanding Credit: Credit Score: Your credit score is a numerical representation of your creditworthiness. It is used by lenders to… Continue reading Credit And Debit Management

Currency exchange, often referred to as foreign exchange (Forex or FX), is the global marketplace for trading one currency for another. The foreign exchange market is one of the largest and most liquid financial markets in the world, where individuals, businesses, financial institutions, governments, and central banks participate in the buying and selling of currencies.… Continue reading Currency Exchange