What is double entry bookkeeping and how does it work in the general ledger?

July 9, 2024 No Comments

A: Double entry bookkeeping is the concept that every accounting transaction has two affects on a company’s finances. The general ledger is the record of the two sides of each transaction. If a company sells a product, its revenue increases and its cash increases by

What is earnings management?

June 30, 2024 No Comments

A: Before diving into what earnings management is, it is important to have a solid understanding of what we mean when we refer to earnings. Earnings are the profits of a company. Investors and analysts look to earnings to determine the attractiveness of a particular

What is earnings management?

July 7, 2024 No Comments

What is earnings management?

July 9, 2024 No Comments

What is liquidity management?

July 9, 2024 No Comments

A: In finance, liquidity management takes one of two forms based on the definition of liquidity. One type of liquidity refers to the ability to trade an asset, such as a stock or bond, at its current price. The other definition of liquidity applies to

What is liquidity risk?

June 30, 2024 No Comments

A: Liquidity risk has different meanings in different contexts. In investing terms, bondholders face varying liquidity risks based on the likelihood that they may have to sell a bond below its listed value. This type of liquidity risk can actually extend to any security, describing

What is liquidity risk?

July 7, 2024 No Comments

What is liquidity risk?

July 9, 2024 No Comments

What is options backdating?

June 30, 2024 No Comments

A: Options backdating occurs when companies grant options to their executives that correspond to a day where there was a significantly lower share price. It is suspected that these situations are not a coincidence and that the board or executives were granted options based on

What is options backdating?

July 7, 2024 No Comments

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