Off-Balance Sheet Transactions

Companies can use a variety of means to control what appears on their financial statements for any of the obvious reasons. This is usually illegal, depending. Tactics are: Controlled non-subsidiaries – owning less than 50% of a company but structuring it in such a way as to retain management control, perhaps by owning all the voting stock but also issuing […]

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Accounting Concepts

Underlying Assumptions, Principles, and Conventions Financial accounting relies on several underlying concepts that have a significant impact on the practice of accounting. Assumptions The following are basic financial accounting assumptions: Separate entity assumption – the business is an entity that is separate and distinct from its owners, so that the finances of the firm are not co-mingled with the finances […]

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