Companies that use accrual accounting recognize revenues when earned. When a company sells a product or services, it typically generates an invoice, creates an account receivable and records the sale ...

Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New School ...

A basic principle of accounting is that net operating losses are subtracted from retained earnings and thus from capital. If the losses are big enough, capital goes negative, your liabilities exceed ...