The accounting cycle: Concepts in management accounting

The accounting cycle essentially consists of five steps, most of which are mechanical, but one involves decision-making.

The accounting equation and double-entry bookkeeping

The fundamental accounting equation underlies the accounting process and is supported by double-entry bookkeeping.

Accounting: An introduction

Accounting is the language in which financial information is communicated about a company to interested parties.

Business entity concept

Your company may or may not be a separate legal entity but its accounts must be kept separate and distinct.

Cash flow: Cash in, cash out through operations, financing and investing

Money moves through a company (“cash flow”) via three main channels: operations, financing and investing.

Closing entries

At the end of the fiscal period, accountants close certain accounts in order to prepare the financial statements.

Closing process: Overview

At the end of the fiscal period, accountants close the temporary accounts. This overview describes the closing process.

Accounting mechanics: An example of financial statements

This sample financial statement highlights the relationship between the different parts of the financial statements.

Financial statements: Balance sheet and income, retained earnings and cash flow statements

Financial statements describe the profitability and value of a business, and have four main components.

Financial statements: Research in Motion (RIM)

The following consolidated financial statements demonstrate how the accounts from one statement affect another.

Fiscal period

The fiscal period represents a periodic set amount of time for which a business reports on its financial performance.

Fiscal period assumption

The fiscal period assumption entails that accounting take place over periodic and set time frames of equal duration.

Going concern concept

The going concern concept assumes that a company will stay in business during and beyond the next fiscal period.

Journal entries: Credits and debits

Journal entries have two sides: they record both an equal debit and credit for every business transaction.

Current liabilities and long-term liabilities on the balance sheet

Two main types of liabilities exist: current liabilities and long-term liabilities. Both are financial obligations.

Revenue (definition)

Revenue: definition: the measure of assets generated by a company’s business operations during a set period.

Shareholders’ equity, or net worth (definition)

Shareholders’ equity, or net worth: The net worth of a company equals the total assets minus the total liabilities.

Using your business plan’s executive summary to attract investors

The executive summary is a key document for entrepreneurs and new companies looking for investors.

Chairperson (definition)

Chairperson: head of a corporation or board of directors, or one who presides over a meeting.

Financing Social Enterprises: Government grants, corporate funders, foundations, bootstrapping or funders and investors?

Financing for social enterprises can come from many locations including corporate funders, government grants, bootstrapping or philanthropic foundations.

A strategy canvas: A tool for developing a differentiation strategy for technology products

Companies can use a strategy canvas to develop a competitive differentiation strategy for new technology products.

Cash versus accrual accounting

Two principal accounting methods exist to record business transactions: cash accounting and accrual accounting.

Gross margin (definition)

The gross margin is what remains after you divide your gross profit by your net sales.

Canada’s four business structures: Sole proprietorship, partnership, corporation and cooperative

In Canada, four ways exist to structure your business: sole proprietorship, partnership, corporation and cooperative.


In the ledger, accountants keep a running balance of the funds in different accounts using a system called a T-account.

Working capital (definition): Its relationship to current liabilities and current assets

Working capital is what remains on the balance sheet after current liabilities are subtracted from current assets.

A Bright Future for Diagnostic Imaging in Ontario

This report focuses on diagnostic imaging and the Ontario-grown companies that are breaking new ground to bring cutting-edge imaging capabilities to the world. 

Impact Investing: Building prosperity outside the mainstream

A discussion with Rt. Hon. Paul Martin and Bill Young, moderated by John Tory with Ilse Treurnicht. How can market forces be used to effectively solve social challenges in Canada? How can social purpose businesses impact social and environmental change in Canada, and how with changes to the Canada Revenue Agency regulations and better tax … Read More

Molecular Diagnostics: New tools for evidence-based medicine

This white paper highlights some of the developments fueling the medical diagnostic (Dx) industry — including accomplishments and promise as well as the challenges facing the sector. 

Net Change Week – Wired Wednesday

MaRS – Building Canada’s next generation of global technology companies.