What are Source Documents in Accounting?

Second, managing source documents – especially keeping track of paper – can be a huge pain. Source documents exist to provide conclusive evidence of a transaction, otherwise known as an “audit trail”. However, as cloud-based general ledger softwares such as Xero and QuickBooks Online have become more popular, many accountants and bookkeepers have shied away […]

What Is Notes Payable? Definition, How to Record, & Examples

As soon as the loan is repaid, the note payable account of the borrower is still on the debit side and cash on the credit side. This is because the debit side indicates no further liability for the borrower with the cash account being credited. Notes payable is not an asset but a liability account […]

Non-Recurring Items Definition + Examples

Forward-looking guidance by management on a pro forma basis can sanity check your adjustments, but be mindful of how management is incentivized to present their financials in the best possible light. In particular, discussions or content related to non-GAAP financial figures, most notably “adjusted EBITDA” and non-GAAP earnings per share (EPS), can be helpful. When […]

What Is A Swap In Forex Trading?

In the 1980s and 1990s, with the increase in trading volumes in the Forex market, the concept of swap became a standard. This increased transparency in trades and allowed traders to calculate profits and losses while considering the swap. Forex/CFDs are complex instruments and come with a high risk of losing money rapidly due to […]

Short Squeeze Meaning, Explained, Stocks Examples, What Is It?

This unexpected rise in the share price can signal to other short-sellers to exit the short, further driving the price up. Frantic buying can drive stock prices to rise out of control, squeezing the short-sellers out of their positions. So, when it comes to a squeeze, short sellers decide to repurchase the stock, sending it […]

Explicit costs vs implicit costs definitions, explanations, differences

On the other hand, pursuing the new product line means losing the value contributed by skilled and qualified professionals. Principles of Microeconomics Copyright © 2022 by Sharmistha Nag is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License, except where otherwise noted. Take your learning and productivity to the next level with our Premium Templates. […]

Types of Bonds and How They Work

Bonds refer to the debt instruments issued by governments or corporations to acquire investors’ funds for a certain period. These are fixed-income securities that allow the bondholders to earn periodic interest as coupon payments. Thus, the bond issuers are the borrowers, while the bondholders are the lenders or investors. On the other hand, investment-grade bonds […]