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...
Category: Financial Accounting
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...
What is the Difference Between Debt Financing and Equity Financing?
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...
Accounting for Stock Transactions | Accounting Student Guide
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...