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, ...
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Year-over-year (YOY) is a useful tool for financial analysts, corporations, and investors. It allows for the comparison of financial figures from one point in time to the same point a year prior. It paints a clear picture of performance—whether performance is improving, worsening, or static...
“Turnover” is an accounting term that refers specifically to the total sales made by a business over a particular period. This amount—the turnover—will appear on an income statement. Some people also call this “income” or “gross revenue”. Turnover differs from profit, which is a me...
Accounting consists of tracking financial transactions and analyzing what they mean for your business. How does accounting help small businesses? Accounting helps you gauge where your small business stands financially, what it can afford at any given time, and where its money is coming from and goi...
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...
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...
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...
While accounting profit is a valuable metric, it has certain limitations: Exclusion of Implicit Costs:Accounting profit does not account for opportunity costs, potentially overstating a company’s financial health. Short-Term Focus:Accounting profit reflects past performance but may not provide insights...
What does accounts payable mean? What is the definition of accounting? What do brackets mean in accounting? What are bills payable in accounting? How can assets include liabilities in accounting? How is actual overhead expensed in accounting? What does it mean if sales revenue has a credit bal...