Tidbit: Is Accounting an Art or Science?
They are assigned amounts when processed in an accounting system. Using one of the examples above, it is not enough to record that the company paid salaries for April. It must include monetary figures – say for example, $20,000 salaries expense. For example, hiring an additional employee is qualitative information with no financial character. However, […]
Debits and Credits: What Are They?
Since the gain is outside of the main activity of a business, it is reported as a nonoperating or other revenue on the company’s income statement. Usually financial statements refer to the balance sheet, income statement, statement of comprehensive income, statement of cash flows, and statement of stockholders’ equity. The journal entry “ABC Computers” is […]
Outsourced Law Firm Accounting & Bookkeeping Services LWI
These reports not only serve internal stakeholders but can also provide external parties—such as investors, normal balance partners, and regulatory bodies—with a clear picture of the firm’s financial health and operational efficiency. Moreover, by encouraging open dialogue regarding financial reporting, law firms can strengthen their strategic planning and adapt more readily to industry changes. This […]
What are Amortized Costs? Amortized Cost Definition
This knowledge empowers them to make informed decisions regarding investments and resource allocation. Some assets subject to amortized Cost include bonds held until maturity, loans receivable, intangible assets like patents or copyrights, and certain long-term investments. A more rapid rate of amortization, depreciation, or depletion will result in a higher amortized cost during the first […]