Definition Fixed assets are subject to gradual depreciation during their use, so they gradually transfer their value to finished products or rendered services. Depreciation is defined as the process of deterioration of fixed assets due to their use or obsolescence. Although..
Inventory values can fall over time, especially for items that are subject to stiff competition or the life cycle of the product declines with time. Thus, we need a way to accurately reflect the true financial value of such assets. Net..
Definition The main purpose of a business is to make a profit, which is the main source of finances for the current activities of the enterprise and its future development. Since profit plays a major role in the company’s activities, it..
Definition The definition of cost principle is a rule according to which business transactions are reflected in the accounting documents in accordance with their value at the time of the initial transaction (the cost paid to purchase the asset), and not..
What is Payroll Accounting? Payroll is a process of calculating workers’ salaries, tax deductions, and paying them. Here are the basic steps you would follow in payroll accounting: Calculate and report an employee(s) gross pay Calculate employee(s) deductions Calculate employer(s) deductions..
Balance sheet, Income statement, and other financial reports is something that most individuals that deal with the business world are familiar with to some extent. As you might know, financial statements are usually prepared based on the accounting records for the..