The expanded accounting equation builds upon the basic accounting equation's use of assets, liabilities and equity by incorporating additional components such as revenues, expenses and withdrawals.

Learn how to calculate the Tier 1 leverage ratio for banks, understand its significance, and assess capital adequacy ...

Managerial accounting involves using a company's financial and other data to help management monitor its performance and make decisions. Return on investment measures how much net operating income a ...

Charities and other nonprofit organizations are known best for the charitable causes they serve, but increasingly, they are using strategies and techniques borrowed from the for-profit business world.

Invested capital equals the sum of all cash that has been invested in a company over its life with no regard to financing form or accounting name. It’s the total investment in the business from which ...

Assets are a company's resources, such as inventory and equipment. They sometimes tie up a significant amount of money, so you want to make sure your small business squeezes as much benefit from them ...

Assets under management (AUM) reflects the total market value of investments held under management by an individual, fund, institution, or financial advisor. Assets under management (AUM) is the total ...

Calculating a company's change in assets can indicate its health and prospects for the future. After calculating it is important to figure out why it changed. Analyzing asset changes helps link ...