Financial Accounting

Goods received note (GRN) is a confirmation of the goods received from the seller. It is issued by the buyer with multiple copies. A GRN serves many purposes for the buyer, the shipping company, and the seller. Let us discuss what is a goods delivery note, how it is issued, and what are its advantages […]

Interim dividends and final dividends are two common types of dividends issued by most companies. Established companies follow a consistent dividend policy to offer income to dividend investors. Both types of dividends offer some advantages and disadvantages to the issuers. Let us discuss what are interim and final dividends and their key differences. What is

A special journal is a bookkeeping record that keeps a record of special accounts of a business. It is created for bookkeeping accounts that require special records and details to be recorded. A special journal can be customized and formatted according to the needs of a business. It is followed by businesses with manual bookkeeping

A cash receipt journal is a source document that records all cash inflows of a business. It is an important part of the cash book. Businesses can record details of cash receipt transactions that are otherwise omitted from the general ledger. Let us discuss what is cash receipt journal, how it is constructed, and its

A 10-column worksheet presents an overview of the account books of a company at the end of an accounting period. It can be prepared for any accounting period like any other financial statement. A 10-column worksheet serves many purposes for a business. It can also be used to prepare financial statements and extract valuable financial

A cash disbursement journal is a primary source document that records cash payments of a business. It helps a business keep an eye on its cash outflows. A cash payment or disbursement journal complements a cash receipt journal where they become part of the cash book. Let us discuss what is a cash disbursement journal,

Common stocks and treasury stocks are important components of the equity of a company. Although both represent equity, they work in contrasting ways. Let us discuss what are common stocks and treasury stocks and their key differences. What is Common Stock? Common stock or a common share refers to a type of security that represents

Cash and stock dividends offer discrete benefits to the issuing company and its shareholders. Let us discuss what are cash and stock dividends and their key differences. What is a Cash Dividend? A cash dividend is an income that investors (shareholders) receive from a company in cash form. Cash dividends are paid out of a

Unbilled Revenue can be defined as revenue that has been earned by the company, but it is not yet recorded on the accounts of the company. It is recognized as the revenue that has been accounted for, but relevant invoices have not yet been sent to the customers. Unbilled revenue simply implies that there are

VAT is basically a consumption tax that is levied on goods and services at every stage of the supply chain; typically where value is added, from the initial production to the point of sale. The VAT that the user pays depends on the underlying cost of the product, adjusted for any cost of materials in