Cost of goods sold is one of the most significant expenses of both merchandising and manufacturing companies. Cost of goods sold is deducted from company sales to calculate gross profit. COGS calculations differ according to company activities, where calculations for merchandising company differ from calculations for manufacturing company. Calculating the COGS for products you manufacture [...] Read More

  Companies have a great incentive to provide timely reliable financial information to help decision makers in rationalizing their decisions. To provide reasonable comparable financial information, companies should prepare four financial statements; one of them is income statement. income statement is one of the three important financial statements used for reporting a company's financial performance over a specific accounting [...] Read More

Companies have a great incentive to maximize their profits, and boost their earnings. To do that, they should generate more revenues and lower their expenditures. In this article we will spot the light on all matters related to revenues and expenses. First of all, we will explain revenues and expenses and give a lot of [...] Read More

A Balance Sheet is a financial statement that shows the company's financial position at a specific point of time. It shows what a company owns, how much it owes as well as the amount invested by the shareholders.  The Balance Sheet is a snapshot of the company's financial situation at a particular point of time. [...] Read More

Income statementThe income statement or profit and loss account is one of the most important financial reports in the organization. It shows the company's net profit or net loss. Unlike the balance sheet which is prepared on a particular day, the income statement is about a given period of time usually a fiscal quarter or [...] Read More

Functions of Financial Accounting The function of Financial Accounting is the process of preparing company's financial statements to show its financial position to customers, suppliers, creditors and investors. Unlike financial Accounting, General '' Management'' Accounting is designed for managers to help them make company's future plans and decisions. Financial Accounting is an administrative tool to [...] Read More