Does a Dividend Reduce Profit? (The answer is “No”)

What Are Dividends? Dividends are a share in a company’s profits paid to shareholders. These payments may come directly from its profits during a year or from retained earnings. Usually, dividends come in the form of cash. But it may also cover share distribution or other benefits. Regardless of how investors get paid, dividends include … Read more

What Is The Condensed Financial Statement?

Introduction Companies commonly arrange a condensed financial statement along with the customary financial statements. The core groundwork on these documents serves various legal commitments and is usually associated with an episodic audit. Nevertheless, except for substituting comprehensive financial statements, condensed financial statements turn out to be the additional documents or authentic supplementary papers essential during … Read more

Rull of Debit and Credit in Accounting for Beginner (Ultimate Guide)

Accounting can be defined as the recording, summarizing, analyzing, classifying, presenting, and reporting of financial information. Financial information is mainly obtained when business transactions take place. Once financial information about business transactions is obtained, it is entered into the accounting system, mainly the general ledgers of a business. At the end of every period, this … Read more

Definition, Explanation, Journal Entry and Example

Definition: Notes receivables describe promissory notes that represent loans paid from a company or business to another party. The note comes with a promise from the borrower that it will repay the lender in the future. Similarly, a note receivable gives the holder, or the lender, the right to receive the amount from the borrower. … Read more