In accrual accounting, if an resource can be used for more than one period, it shouldn’t be expensed immediately. Instead, it is capitalized and the cost of the asset is recognized over the life of the assets. Depreciation is a way to assign the cost of the an asset over its useful ...
In accounting, an account is a record in the general ledger that is used to sort and store transactions. For example, companies will have a Cash account in which to record every transaction that increases or decreases the company’s cash. Another account, Sales, will collect all of the amou...
An asset account is a general ledger account used to sort and store the debit and credit amounts from a company’s transactions involving the company’s resources. The balances in the asset accounts will be summarized and reported on the company’s balance sheet. Generally, the asset account ...
Definition:An account is a record in an accounting system that tracks the financial activities of a specific asset, liability, equity, revenue, or expense. These records increase and decrease as thebusiness eventsoccur throughout the accounting period. Each individual account is stored in the genera...
Define a contra asset account. What does it mean to report expenses by function? Define the term understated in accounting. Define: a. Assets. b. Liabilities. c. Equity. What is the significance of Accumulated Depreciation as an asset account?
A fixed asset, in accounting, is defined as a long-term asset having a lifespan > 1 financial year and a value > capitalizing limit. They are typically bought to generate income. They are also known as Capital Assets and Property, Plant, and Equipment (PP&E). These assets are normally ...
In order to process an average accounting return on investments, it is important to consider the expenses associated with the investment. For example, a number of financial experts choose to includedepreciationof the asset as part of the calculation. The depreciation will impact the average book va...
Fixed assets are resources with an expected life of greater than a year, such as plants, equipment, and buildings. An accounting adjustment calleddepreciationis made for fixed assets as they age. It allocates the cost of the asset over time. Depreciation may or may not reflect the fixed asse...
What is the purpose of depreciation in accounting? A. To increase the value of an asset B. To allocate the cost of a tangible asset over its useful life C. To sell an asset D. To recognize an asset's gain 相关知识点: 试题来源: 解析 B ...
In accounting, impairment is a permanent reduction in the value of a company asset. It may be afixed assetor anintangible asset. When testing an asset for impairment, the total profit, cash flow, or other benefits that can be generated by the asset is periodically compared with its current...