Accrual Basis of Accounting and Accrued Expenses
Later, whenthe company receives the cash, no revenue is recorded because thecompany has already recorded the revenue. Under the accrual basis,adjusting entries are needed to bring the accounts up to date forunrecorded economic activity that has taken place. Cash basis accounting records revenue and expenses when actual payments are received or disbursed. It doesn’t account […]
S&P 500 Index Chart SPX Quote
It is not an exact list of the top 500 U.S. companies by market cap because there are other criteria that the index includes. Still, the S&P 500 index is regarded as one of the best gauges of prominent American equities’ performance, and by extension, that of the stock market overall. It is important for traders […]
What is a Forex Broker?
Unlike stockbrokers, whose clients’ funds are protected by the Securities Investor Protection Corporation (SIPC) if the brokerage shuts down, U.S. forex brokers provide no account protection. Now, most participants around the world trade the currency pair with the highest volume. The most popular version is also likely to carry a narrower bid/ask spread, lowering trading […]
Cash vs Accrual Accounting: Differences Explained
That is important, as receiving or sending payment is not always immediate. Under the cash accounting method, sales generated of $5,000 which shows a revenue will be recognized on 30th April, when the company receives the payment. The accrual basis of accounting is in contrast to cash accounting, which recognizes transactions only when there is […]