Accounting articles

What is amortization and why do we amortize?

What is amortization and why do we amortize?What's the Difference Between Amortization and Depreciation in Accounting?What is an example of amortization?Amortization expense is the write-off of an intangible asset over its expected period of use, whi... Read more

How Does Amortization Impact Interest Rates?

How Does Amortization Impact Interest Rates?Amortization expense is an income statement account affecting profit and loss. The offsetting entry is a balance sheet account, accumulated amortization, which is a contra account that nets against the amor... Read more

Allowance For Doubtful Accounts Definition

Allowance For Doubtful Accounts DefinitionRegardless of which percentage is used, either percentage would probably result in a reasonable estimate of uncollectible accounts receivable. Using the 1.70% estimate, the Nicholas Corporation would prepare... Read more

Direct allocation method — AccountingTools

Direct allocation method — AccountingToolsOne of the most commonly tracked allocation rates is the allocation rate paid to a 401(k)from an employee’s paycheck. In many employee benefit plans, the employer will match the employee’s allocation rate up... Read more


AllocateMeaning of allocate in EnglishMost basic administrative paperwork and errands fit into this category. You can see where your resources are allocated across a calendar that is color-coded to note whether they’re on- or off-task, on vacation or... Read more

Frequently Asked Questions About the AICPA

Frequently Asked Questions About the AICPACareer GuidanceThe CPA designation is granted by individual state boards, not the American Institute of Certified Public Accountants (AICPA). To become a full member of AICPA, the applicant must hold a valid... Read more

Cost of Debt

Cost of DebtA company's cost of debt is the effective interest rate a company pays on its debt obligations, including bonds, mortgages, and any other forms of debt the company may have. Because interest expense is deductible, it's generally more usef... Read more