Our accountants at a glance:
  • Located in North Dallas
  • Ph: 972-555-1022
  • Website
  • 12234 Arapaho Road
  • Dallas, TX 75380

A North Dallas CPA offers basic accounting advice:

Information about a particular enterprise gains greatly in usefulness if it can be compared with similar information about other enterprises and with similar information about the same enterprise for some other period or some other point in time. Comparability between enterprise and consistency in the application of methods over time increases the informational value of comparisons of relative economic opportunities or performance. The significance of information, especially quantitative information depends to a great extent on the user's ability to relate it to some benchmarks. 

According to our top CPAs in North Dallas, each user of accounting information will uniquely perceive the relative value to be attached to each quality of that information. Ultimately, a standard-setting body has to do its best to meet the needs of society as a whole when it promulgates a standard that sacrifices on of those qualities for another; and it must also be aware constantly of the calculus of costs and benefits.
Accounting terminology defined - Capital statement: The capital statement, also known as the statement of owner's equity, ties the income statement to the balance sheet by showing how the owner's equity changes during the period.

Recording changes in capital:
  • The owner's capital at the beginning of the period is the first item on the statement. 
  • The net income for the accounting period is then added to the beginning capital, as are any additional investments made during the period.
  • Finally, any withdrawals by the owner during the period are subtracted, as is a net loss, to arrive at the owner's capital at the end of the period.

For more terms and bookkeeping help, contact the CPA firm above today for more info.