After recording this impairment, the production facility's new carrying value becomes $4.2 million. Future depreciation will be calculated based on this reduced amount spread over the facility's remaining useful life. Even if economic conditions improve unexpectedly and the facility's value increases, ...
Institutional quality has been, and will continue to be, an important dimension of academic accounting. How we measure it, by increasingly featuring objective output measures, has taken the construct away from demonstrated meaningfulness among its most important constituency. This paper forms several ...
The Accounting Treatment of Goodwill Goodwill is calculated and categorized as a fixed asset in the balance sheets of a business. From an accounting and fiscal point of view, the goodwill is not subject toamortization. However, accounting rules require businesses to test goodwill for impairment ...
Your accounting system shows how your business earns and spends money, but the correlation between the purchases you make and the journal entries you create isn't always entirely straightforward. Some expenditures are expensed and appear on your books in ways that directly reflect the money you ...
What Does Reconciliation Mean in Accounting Account reconciliation is the process of comparing transactions you have recorded using internal record-keeping for financial accounts against monthly statements from external sources, such as a bank, credit card company, or other financial institution, to ...
In financial accounting, "b/f," "c/f," "b/d," and "c/d" are commonly used abbreviations that stand for the following: b/f or b/d: These stand for "brought forward" or "brought down." They are used to refer to the balances brought forward from the previous period or accounting...
The roots of modern accounting principles trace back to theStock Market Crash of 1929and the subsequent Great Depression. Before then, companies had free rein to report their finances however they wished, often hiding losses and inflating profits through creative bookkeeping. In the aftermath of the...
Answer to: What does the term "overstated" mean in accounting? By signing up, you'll get thousands of step-by-step solutions to your homework...
At work, we often hear others talking about reports. But what is reporting and what does reporting mean exactly? There are multiple types of reporting. Can you tell the difference? In this article, I would like to introduce what reporting is and give you some examples to clarify the key ...
In managerial accounting, what is quarter one? What does it mean to be 'cross'? What is the difference between the terms multidisciplinary and interdisciplinary? What is a cyclically adjusted budget balance? What does a Pearson Correlation of -.09 mean? How would you define the term 'color ...