Under a capital lease, the leased asset is treated for accounting purposes as if it were actually owned by the lessee and is recorded on the balance sheet as such. An operating lease doesn't grant any ownership-like rights to the leased asset, and is treated differently in accounting terms....
Revaluation accounting is a process that involves reassessing the carrying value of a company's assets to reflect its current fair value. It is a departure from the traditional historical cost principle, where assets are initially recorded at their acquisition cost and subsequently depreciated. Under ...
In accounting, reconciliation refers to the process of comparing two sets of records or financial information, such as bank statements, general ledger accounts or other relevant records, to ensure their accuracy and consistency. The primary objective of reconciliation is to identify and resolve any ...
Nathan Soto July 29, 2024 Resume Help Best Soft Skills for Your Resume: List & 100+ Examples for 2025 Corissa Peterson December 25, 2024 Resume Help 30+ Essential Resume Statistics in 2025 — Analysis of 25,000 Job Applications Eva Chan, CPRW ...
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In accounting, the cost of acquisition reflects all the costs related to buying an asset, such as equipment or a competitor. In the context of sales and marketing, cost of acquisition is used to determine all of the costs related to acquiring new customers. In either scenario, knowing the ...
What Is Operating Cash Flow (OCF): Definition and Formula What Is Cash Basis Accounting? Definition and Guide Cash flow FAQ What is cash flow in simple terms? In simple terms, cash flow is the movement of money into and out of a business or an individual’s finances. It tracks the chan...
What is an asset? In short, the assets are all those resources that the company has at its disposal to run thebusinessin the short and long term. What is a liability? Theliabilitiesinstead are mainly the money borrowed to acquire those resources. ...
In the case of a corporation, the equity account is Retained Earnings. In the case of a sole proprietorship, the equity account is the owner’s capital account. As a result, the income statement accounts will begin the next accounting year with zero balances. Examples of Income Statement ...
Life cycle costing is the totalcost of productownership from inception to completion. For instance, perhaps in order to produce a new product, a company needs to buy a $600 machine. But how much is the financing, maintenance and disposal of that machine going to add to the $600? What ab...