[카테고리:] Bookkeeping

Unlike regular liabilities, contingent liabilities are not recorded as current obligations on the balance sheet but are disclosed in the notes to financial statements. These liabilities arise from situations where the outcome, and therefore the liability, will only be determined by a future event, such as a lawsuit, guarantee, or warranty claim. Businesses need to…

Chartered accountant Michael Brown is the founder and CEO of Double Entry Bookkeeping. He has worked as an accountant and consultant for more than 25 years and has built financial models for all types of industries. He has been the CFO or controller of both small and medium sized companies and has run small businesses…

The January income statement will report the collection of the fees earned in December, and the February income statement will report the expense of using the December utilities. Hence, the cash basis of accounting can be misleading to the readers of the financial statements. Accrual basis accounting requires matching expenses to revenues whenever possible. Types…

Let’s take a different case where such gains and losses do not flow through the Income Statement. As we see above, the Income Statement contains the revenues and expenditures related to the business’s main operations. Addiko will continue to expand its product offering to Consumers and SMEs and will launch further E2E digital capabilities to…

Expenses refer to the total expenditures and costs incurred by a company, including fixed and variable costs, regardless of whether they are paid for with cash reserves or revenue. Burn rate is when a company spends its available cash, typically measured every month. By analyzing the cash flow data, startup founders can address cash flow…