Why do you think GAAP requires consolidation when a company acquires 50% or more of the voting stock of another company? Explain the main difference between common and preferred stock. What is a dividend? Why do companies pay dividends?
Explain and differentiate between the three concepts of income: economic, legal, and accounting. Explain the difference between the "fair presentation" and "legal compliance" orientations of accounting and identify nations in which each is prevalent. Explain the main difference between common and prefe...
Explain the purpose of adjusting entries as they relate to the difference between cash and accrual accounting. How does the accrual method for tax reporting differ from the accrual method for financial reporting? What is the difference between...
Yes, for publicly traded companies, to ensure transparency, consistency, and comparability, adhering to specific regulatory standards like GAAP or IFRS. 7 Can accounting principles vary between companies? While the fundamental principles are consistent, especially for financial accounting (due to GAAP/IFR...
You're not the only one asking about the difference between an invoice and a receipt. Read on to learn how they're distinct, when to use them, and when to lose them.
Total revenue is the sum of the balances of all revenue accounts found in an entity’s accounting records or ledger. Revenues have credit balances and the transactions with the greatest impact on these accounts are earnings related to cash and credit sal
, while revenue measures sales activity. Revenue is a GAAP measure, while EBITDA is a non-GAAP measure. EBITDA multiples consider enterprise value and EBITDA, while revenue multiples calculate both the relationship between market cap and sales and the relationship between enterprise value and sales....
one of the conditions set under GAAP is met. In contrast, lease agreements without ownership characteristics is an operating lease. The distinction between capital leases and operating leases merely comes down to whether there are ownership characteristics, which determine the presentation of the lease...
What Is the Main Difference Between GAAP and Non-GAAP? GAAP is the U.S. financial reporting standard for public companies, whereas non-GAAP is not. Unlike GAAP,non-GAAP figures do not include non-recurring or non-cash expenses. Also, because there are no standards under non-GAAP, companies...
One of the primary similarities between depreciation, amortization, and depletion is the recognition of an expense without the associated cash flow. Depreciation and amortization are both very misleading expenses for this reason. They may be omitted from certain reports to better clarify operating needs...