Accounting

This allows you to plan for this expense in advance, ensuring that the funds should be available. We may receive compensation from partners and advertisers whose products appear here. Compensation may impact where products are placed on our site, but editorial opinions, scores, and reviews are independent from, and never influenced by, any advertiser or partner. Case Studies & Interviews Learn how real businesses are staying relevant and profitable in a world that faces new challenges ever […]

Fixed assets include land, machinery, equipment, buildings, and other durable, generally capital-intensive assets. That’s because a company has to pay for all the things it owns by either borrowing money or taking it from investors . The final part of the balance, equity represents the shareholder’s or owner’s stake in the company.

A balance sheet states a business’s assets, liabilities, and shareholders equity at a specific point in time.
A balance sheet is a financial […]

Completing the challenge below proves you are a human and gives you temporary access. If one or more of your mortgages doesn’t fit into any of these categories, refer to Publication 936, Home Mortgage Interest Deduction to figure the amount of interest you can deduct as an itemized deduction.
For best practices on efficiently downloading information from SEC.gov, including the latest EDGAR filings, visit sec.gov/developer. You can also sign up for email updates on the SEC open data progra […]

Both profit and loss statements and balance sheets are important for running your small business or corporation. Learn about these two different statements and about how they help your company’s future. It’s also valuable to compare those profit margins to competitors. If one competitor produces much higher profit margins, it may be worth exploring. A big company with stable revenue producing a strong operating margin may indicate the potential profitability of a small company in th […]

GAAP is a common set of generally accepted accounting principles, standards, and procedures that public companies in the U.S. must follow when they compile their financial statements. There are instances in which GAAP reporting fails to accurately portray the operations of a business.
Thus, a company might include a non-GAAP line item for earnings before interest, taxes, depreciation and amortization that excludes quarterly depreciation. Non-GAAP earnings are an alternative accounting method us […]

It will provide the needed service for a maximum of 6 years. If the salvage value changes as shown below, determine the economic life of the asset at 20% per year. In the cost data we license, a Q4 house has an Economic Life of 60 years. When the Effective Age is 15 years, the Remaining Economic Life is 45 years ( ).
This is also the case when new technological innovations make old technology obsolete. An asset’s economic life is different from its physical life. A racehorse may generate […]