BUSINESSTOWN Accounting & Finance Made Easy

How Much Control Do Investors Have?

Key Terms of a Preferred Stock Investment

Typical Terms of Convertible Debt

How to Create an Income Statement for Your Business

What Is an Income Statement? An income statement, otherwise known as a profit and loss statement, is a summary of a company’s profit or loss during any one given period of time (such as a month, three months, or one year). The income statement records all revenues for a business during this given period, as... READ MORE

How to Create a Balance Sheet for Your Business

What Is a Balance Sheet? Knowing what a balance sheet is crucial. You can find our sample balance sheet at the end of the article. A balance sheet is a snapshot of the financial condition of a business at a specific moment in time, usually at the close of an accounting period. A balance sheet comprises... READ MORE

Depreciation and Amortization Basics

What Is Depreciation? The bookkeeping and accounting concept of depreciation is really pretty simple. Asset depreciates. Measuring the loss in value over time of a fixed asset, such as a building or a piece of equipment or a motor vehicle, is known as depreciation. Depreciation is considered an expense and is listed in an income... READ MORE

A Beginner’s Guide to Inventory Accounting

Inventory accounting is more of an issue for product businesses, such as manufacturers, wholesalers, and retailers. However, if you are in a service business that also has some inventory, it could impact you, too. Inventory accounting comes into play when you buy, use, and also hold in inventory identical goods at different prices. This leads... READ MORE