Depreciation DefinitionThe journal entry for this depreciation consists of a debit to depreciation expense, which flows through to the income statement, and a credit to accumulated depreciation, which is reported on the balance sheet. Accumulated dep... Read more
The Income Statementconsists of the study of a single financial statement in which each item is expressed as a percentage of a significant total. Vertical analysis is especially helpful in analyzing income statement data such as the percentage of cos... Read more
Is chart of accounts the same as a general ledger?Balance Sheet vs. Profit and Loss Statement: What’s the Difference?When the clock is sold, the company debits cost of goods sold for $40 and records a $40 credit for revenue to indicate the sale of th... Read more
Rules of Debits & Credits for the Balance Sheet & Income StatementOverview of Long-Term LiabilitiesThe balance sheet is organized into three categories—assets, liabilities and equity—and includes five types of account entries. Liabilities hav... Read more
NAIC Consumer Alert: Property InsuranceReevaluating your long-term policy to make sure it fits your needsThis coverage may also protect you from covered hit-and-run accidents. Coverage is subject to policy coverage provisions and limits. What RV insu... Read more
Collect Synonyms & AntonymsWords nearby collectedSome collectors’ items become valuable over time, and others reward collectors through entertainment and a sense of organizational pride. Some of the most fascinating aspects of collecting are the... Read more
Market Value Definition & ExampleIn simplified terms, it's also the original value of the common stock issued plus retained earnings, minus dividends and stock buybacks. BVPS is the book value of the company divided by the corporation's issued an... Read more
Good Debt vs. Bad Debt: Know the Differenceallowance method for bad debts expense definitionCompanies that extend credit to their customers report bad debts as an allowance for doubtful accounts on the balance sheet, which is also known as a provisio... Read more
Accounting for Natural Resource Assets & DepletionAccounting for DepletionThus, we could expense all, some, or none of the depletion and removal costs recognized in an accounting period, depending on the portion sold. If all of the resource is so... Read more
What is average total assets? definition and meaningAccounting equation explainedIf everything is viewed in terms of the balance sheet, at a very high level, then picking the accounts to make your balance sheet add to zero is the picture. At the end... Read more
