What is Contributed or Paid-in Capital? Contributed Capital is also called Paid-in Capital. It includes any amounts “contributed” or “paid in” by investors or stockholders through...
Category: Financial Accounting
Stockholders' Equity is the difference between what a corporation owns (Assets) and what a corporation owes (Liabilities). Stockholders' Equity is made up of Contributed Capital and Earned Capital....
Is Unearned Revenue an Asset, Liability, Revenue, or Expense?
Unearned Revenue is a Liability. It represents cash received by the company that cannot yet be considered earned revenue. Until the revenue is earned the cash received is a liability. If the company...
What is the Difference Between Financial and Managerial Accounting?
The differences between financial and managerial accounting are: Financial accounting focuses on collecting, summarizing, and reporting transactions of a business or organization into financial...
In Chapter Two of most accounting textbooks, the spreadsheet method or Accounting Equation method of recording transactions is replaced with T-Accounts and Journal Entries. T-Accounts reinforce...
Posting Reference or Post Ref is a column in an accounting General Journal and General Ledger. It serves as a check and balance to ensure each transaction has been posted to the appropriate account. ...