Becoming a certified public accountant is a huge step forward in your professional career. Whether you want to work in public accounting, private industry, or governmental agencies, the CPA designation gives you instant creditability and professional respect. CPAs often serve as C-suite executives, controllers, and other officers in public companies. They also perform audits of
What Is Purchase In Accounting? Definition: Purchase in accounting refers to the taking control of a given item or service by paying a set amount of money. Conversely, it is the exchange of money for a particular good or service. The process is usually undertaken by individuals or corporations in need of items or services.
What is Profit? Definition: Profit, also known as net income, is simply what is left behind when all expenses are deducted from earnings. It is also denoted as the financial benefit left behind whenever revenue exceeds expenses, costs, and taxes combined. In a business setting, profits can be channeled back into the business for expansion
What is an Unadjusted Trial Balance? Definition: An unadjusted trial balance is a representation of raw listings of all ledger accounts for a company in a given accounting period. The info in the unadjusted trial balance is raw because it lacks necessary adjustments. Of the nine main steps of the accounting cycle, preparation of the
What is Year To Date (YTD)? Definition: In accounting, year to date (YTD) is the period between day one of a fiscal or calendar year and the current date. There is no specific measurement for the YTD period so any number of days can do. It could be one just one day since the start
What are Trading Securities? Definition: Trading securities are a type of securities that companies hold with the hopes of selling them in the near-term at higher prices. They can either be equity or debt and the intent of holding this type of securities is to make money, especially for liquidity purposes. Every business strives to
What is Total Manufacturing Cost? Definition: Total manufacturing costs are all the combined costs that are involved in a business’ manufacturing process. The manufacturing process of every business aims to convert raw materials into products that are ready to be sold to the market. There are many processes involved in manufacturing and notably a lot
What is a Single Step Income Statement? Definition: A single-step income statement is a simplified record of the revenues and expenses of a business over a given accounting period. All businesses are required to prepare financial statements for either internal or external use. The income statement is one of these statements and it helps users
What Is Selling General Administrative Expenses? Definition: Selling general administrative (SGA) expenses refers to the money spent on operating a business. Alternatively, accountants refer to this expense as operating expenses. Usually, this line of expenses includes all costs that a business incurs that arise from activities unrelated to production of goods/services. In business, a company
What is the Statement Of Owner’s Equity? Definition: The statement of owner’s equity is a concept in economics that is all about demonstrating the changes that business experiences in its capital balance during a specific financial reporting duration. The capital balance changes are usually caused by net income, net loss, withdrawals, and contributions. The statement