Through these fundamental accounting statements, the corporate management communicates financial information to all of its stakeholders. Accordingly, the economic events of a business are recognized by matching the costs incurred with the revenue earned at the time when a transaction occurs. Materiality concept states that events that are trivial and have an insignificant impact on […]

The 2021 data also reflects changes in people’s incomes and in government policy during the coronavirus pandemic. The pandemic-related downturn and relief programs both affect the 2021 data. After dropping by 6.6 percent from 2019 to 2020, AGI reported by the bottom half of taxpayers increased by 20 percent in 2021. Income tax after credits […]

Suppliers may assess the creditworthiness of buyers by reviewing their financial statements, credit reports, payment history, and references. Paying bills early or on time through early payment discounts helps build trust and solidify supplier relationships. This fosters continued shipments of products and can lead to favorable treatment and support from suppliers in the future. This […]