December 11, 2020Charles Lutwidge
Definition and formula The double declining balance method is the most popular variation of the accelerated depreciation method. Here, the depreciation rate is higher at the start of the asset’s life. This particular method never completely reduces the asset value to..
December 09, 2020Charles Lutwidge
Definition and Explanation Depreciation is the process of gradually transferring the cost of the means of production (long-term assets) to the manufactured product. Depreciation is also used to deduct the costs of buying and improving a rental property. For example, we..
December 08, 2020Charles Lutwidge
December 04, 2020Charles Lutwidge
Business cost planning can be characterized as a special decision-making process, in which information about the past financial and production activities of an economic entity is analyzed, potential resources are assessed and the organization’s goals for the future as well as..
December 02, 2020Charles Lutwidge
Definition Owner’s equity is the enterprise’s funds embodied in net assets, funds initially invested by its founders or participants, as well as its financial results accumulated (lost) in the course of its activity – profits and losses received (incurred) over the..
November 30, 2020Charles Lutwidge
November 27, 2020Charles Lutwidge
Definition Before proceeding to the preparation of management and financial reports, an Adjusted Trial Balance is prepared. For that, adjustment entries are made to the Unadjusted Trial Balance. The latter are necessary in order to ensure an accurate reflection as well..
November 25, 2020Charles Lutwidge
November 23, 2020Charles Lutwidge
Definition Capital expenditure can be defined as any expenditure incurred in creating, acquiring, expanding, or improving an asset for use by a company. The important point is that the benefit from such capital expenditures will be spread over a number of..