This reverse capital exchange between a company and its stockholders is known as share buybacks. Shares bought back by companies become treasury shares, and their dollar value is noted in the treasury stock contra account. The equity capital/stockholders’ equity can also be viewed as a company’s net assets. You can calculate this by subtracting the…

In conclusion, a post-closing trial balance is an important financial report for a company to ensure that all temporary accounts have been closed and the books are balanced. It’s important to note that the after-closing trial balance is not a financial statement but rather a report that is used to ensure the accuracy of the…

This way, you can see how much profit or loss your business generates during a reporting period. Non-operating revenue is typically found below operating income and above net income/profit in your financial statement. The primary way of generating revenue is through selling your product or delivering a service. You can clearly see your business’s profitability…

Enron’s problems even spilled over to its auditing firm, Arthur Andersen. The downfall of that venerable accounting firm tainted the reputations of thousands of accountants who had nothing to do with Enron, but were working for the wrong firm at the wrong time. Leaders should demonstrate integrity and ethical decision-making in their actions and decisions….

Any residual balances after all assets have been liquidated and liabilities have been satisfied are called « net assets. » In ExxonMobil’s statement of changes in equity, the company also records activity for acquisitions, dispositions, amortization of stock-based awards, and other financial activities. This information is useful for analyzing how much money is being retained by the…