Accounting How To: How to Pass Accounting Class!

A contra account is an account used to offset the balance in a related account. When the main account is netted against the contra account, the contra account reduces the value of the main account...

What is a Bond? A bond is a loan from investors to a borrower. When a corporation or government wants to raise money, one option is to issue a bond. The borrower receives cash in exchange for...

When businesses needs funds to expand or grow the business, that capital can come from three sources: Funds from profitsFunds from debtFunds from equity Funding business growth from profits...

What is Stock in a Corporation? Stock represents shares of ownership in a corporation. Each share of stock represents one share or fraction of ownership in the corporation. Publicly traded...

A stock split occurs when a corporation's board of directors decides to divide one share of stock into multiple shares. For example, a two-for-one stock split means that one share becomes two shares....

What is a Dividend? A Dividend is a payout of earnings by a corporation to its stockholders. Dividends can be cash dividends or stock dividends. A dividend is paid per share of stock. The amount...