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, ...
When you use accounting software to reconcile accounts, the software does some of the work for you, saving you a good deal of time. However, the process still needs human involvement to capture certain transactions that may have never entered the accounting system, such as cash stolen from a ...
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 ...
Business goodwill is generally used in accounting when acquisitions take place, unless the type of business is more specific, such as a practice. Note Goodwill, in general, is typically referred to as business goodwill as the two terms are often used interchangeably. Practice Goodwill ...
What Does Impairment Mean in Accounting? With Examples What Is Capitalization? Inherent Risk: Definition, Examples, and 3 Types of Audit Risks What Is Gross Income? Definition, Formula, Calculation, and Example Working Capital Management: What It Is and How It Works Fixed Cost: What It ...
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...
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 ...
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...
What does it mean to use an accelerated depreciation method? When is the accounting equation in balance, and what does that mean? Briefly explain the differences between the terms, depreciation, depletion, and amortization. What do you understand by the term amortize a loan in accounting? What ...
Accounts payable is an accounting term describing the list of financial obligations that your business has accrued that must be paid in the near future. If you buy materials from suppliers who offer terms such as payment due after 30 days, these unpaid sums belong in your accounts payable accou...