…Defining and Understanding the Corporation and Its Accounting

...Corporations may also choose to issue stock dividends if their cash is unavailable or needed elsewhere. Stock dividends give a shareholder a larger claim in the company. Another option is to issue a stock split, which is often used to attract more investors by lowering the price (splitting the stock). Such interest in the shares will hopefully push the stock price back up, resulting in profit for those who held shares before the split. In basic terms

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0 Comment(s) / December 7, 2016

…The Importance of Cash Flow

...The idea is to create a detailed report of cash activity. It is a "cash log" for the fiscal period that shows in a great detail what happened in a cash account. One thing that you have to remember is that, when accountants refer to cash, it is not just cash sitting in a bank account, it also means cash equivalents, instruments that can be easily converted into cash. They include: cash in the bank account, commercial paper (it is a short term loan), i

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0 Comment(s) / November 29, 2016

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