Asset impairment helps keep financial statements accurate once assets unexpectedly lose significant value. By requiring companies to recognize these value declines promptly, impairment accounting ensures investors receive transparent information about a company's true financial condition and future earnings potent...
In accounting, what is the definition of "warrant"? What does the term solvency mean? Define in accounting terms what are retained earnings. Define the following term: Receivable turnover ratio. Define the following terms: Debits and Credits. ...
Accounting is really a system or process of recording information and displaying it to people in an understandable way, so that they can make decisions based on the financial information. What Does Accounting Mean? Contents[show] Accounting is often called the “language of business” because it ...
"Stretching the Public Purse: Budgetary Responses to a Global Pandemic" is the title of the special issue of the Journal of Public Budgeting, Accounting and Financial Management that was compiled in the wake of the global COVID-19 pandemic. Whereas the special issue looked at the pandemic from...
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. ...
No, goodwill is not a nominal account. It is an intangible real account. These accounts represent assets which cannot be seen, touched or felt but they can be measured in terms of money. The Valuation of Goodwill Goodwill needs to be valued when a triggering event results in the fair va...
What Does Change in Accounting Estimate Mean? Contents [show] In other words, GAAP requires that accountants use their best judgment when recording events with no set values or time frames. In some cases, accountants must make estimations based on what they currently know and what they believe ...
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 is meant by an "accelerated" depreciation method? Describe depr...
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 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 ...