The expanded accounting equation builds upon the basic accounting equation's use of assets, liabilities and equity by incorporating additional components such as revenues, expenses and withdrawals.

There are two basic methods of accounting that businesses use to track and report revenues: the cash basis and the accrual basis. Under the accrual basis, revenues are recorded on a company's income ...

Calculate revenue growth by comparing yearly or quarterly revenue, showing business success. Accrual accounting rules may delay cash flow despite showing revenue increases, affecting actual income.

Environmental accounting is the practice of using traditional accounting and finance principles to calculate the costs that business decisions will have on the environment. For example, before ...

Depreciation is a fairly simple concept. When a business owner buys a fixed asset, that asset loses its value over time, and so its most current value must be accounted for on the company’s balance ...

In accrual accounting, an expense is recognized when the business becomes liable for it, not when it settles the account. A company may pay some expenses, such as utility bills, in arrears and others, ...