Revenue Recognition: What It Means in Accounting and the 5 Steps
The result is a higher amount of cash on the cash flow statement because depreciation is added back into the operating cash flow. Depreciation is a type of expense that is used to reduce the carrying value of an asset. It is an estimated expense that is scheduled rather than an explicit expense. Depreciation can […]
Amortization vs Depreciation: What’s the Difference?
Alternatively, depreciation is recorded by crediting an account called accumulated depreciation, a contra asset account. The historical cost of fixed assets remains on a company’s books; however, the company also reports this contra asset amount as a net reduced book value amount. A higher percentage of the flat monthly payment goes toward interest early in […]
Foreign Currency Translation: International Accounting Basics
A business, individual or other such entity must keep a formal record of their financial activities. This is often for taxation purposes and accounting translation these records are called financial statements. How might you translate liquidity or adverse action notice into Japanese or Norwegian? Stepes Towards Global Financial Services Success Although the guidelines for currency […]