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, ...
Reconcile and review:At the end of the month (or quarter), compare your recorded expenses to your bank statements and receipts. You should also regularly review your income statement to see how your expenses are affecting your profitability. A regular review can help you spot trends, control sp...
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 ...
Accounting: What the Numbers Mean, 10/eBook Preface
Record the goodwill as $1.6 million in the noncurrent assets section of your balance sheet. 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 sub...
What Does the Term "Income Tax Payable" Mean? “Income tax payable” is a financial accounting term for the current liability reported on an organization’s balance sheet. It indicates the taxes that the organization expects to pay within 12 months. ...
What Does End of Month Mean? EOM refers to the time payment is due. In this case, the invoice is due within 30 days after receiving it, but 30 days doesn’t always fall on the end of a month. When the credit terms list EOM, usually the debtor has until the end of the month in...
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...
What Information Does Accounting Need for Month-End Close? Here is a list of common information accounting teams need to have on hand to close the monthly books: Total revenue numbers Bank account information Inventory levels (if applicable) ...
Relating to accounting, what does the term "de minimis" mean? What do you understand by the term creditor in accounting? What does the term depreciation mean in accounting? Define the following term: Accounting. What do you understand by the term accounting?