Debits increase assets and decrease liabilities, while credits decrease them. Double-entry accounting records every transaction in at least two accounts. Debits are recorded on the left, credits on the right side of the ledger
Assets represent money in, liabilities represent money out on a balance sheet. Balance sheet shows company's financial health at a given moment. Assets equal liabilities plus shareholders' equity
Investment Calculator helps determine parameters for investment plans. Four key variables: return rate, starting amount, end amount, and investment length. Additional contributions can increase returns and end value
Standard establishes principles for financial reporting of assets and liabilities. Applies to all entities except certain specific financial instruments. Focuses on present value of future cash flows
Balance sheet provides snapshot of company's financial standing at specific moment. Shows assets, liabilities and shareholder equity at a given time. Investors and loan providers require accurate current and past balance sheets
Balance sheet reports company's assets, liabilities, and equity at specific point in time. Provides snapshot of company's finances and serves as basis for investor analysis. Must balance according to equation: Assets = Liabilities + Equity