MACRS – Meaning, Importance, Calculation And More
MACRS or the modified accelerated cost recovery system is the system of calculating tax deductions on depreciation in the United States. Under this, the manager assigns each fixed asset …
Financial Accounting
Accrued Expense – Meaning, Accounting Treatment And More
Accrued expense or accrued liabilities is the term describing the payments or expense that the company incurs or recognize but would be due for the payment in the future. …
Income Statement
There are four Financial Statements which are prepared during an accounting year. In this article, we will focus our attention on the Income Statement. We will learn what the …
Chart of Accounts – Meaning, Importance And More
Chart of Accounts or CoA is the record of all accounts of a company pooled at one place. A company usually makes hundreds of transactions daily. So, how the …
Impairment Cost – Meaning, Benefits, Indicators And More
Impairment Cost or charge is the drop in the value of an asset on a permanent basis. Whether the asset is tangible or intangible, it is prone to impairment. …
Accounting Cycle
What is the Accounting Cycle? The person maintaining the accounting cycle defines it as a systematic process of recognizing, analyzing and posting the various events related to accounting in …
Deferred Revenue – Meaning, Importance And More
Deferred revenue is the money that a company receives even before earning it, or we can simply say advance payment. Companies do not report deferred revenues in the income …
Double Declining Depreciation
Double declining depreciation method is an accelerated depreciation method where the depreciation expense decreases with the age of the asset. Depreciation charge under the double declining depreciation method is …
Straight Line Depreciation
Straight-line depreciation method is the simplest method for calculating an asset’s loss of value or in other words depreciation over a period of time. This method is helpful in …
Unit of Production Depreciation
The decrease in the value of an asset due to the normal wear and tear, time effect and due to the obsolescence, etc is called depreciation. Amortization is also …
