Accounting Tools

JUNE 20, 2023

Related Courses Accounting for Intangible Assets Fixed Assets Accounting How to Audit Fixed Assets What are Assets? An asset is something that is expected to yield a benefit in a future period. In a business, assets are aggregated into different line items on the balance sheet.

Computation 75

Computation Deposits Auditing Accounting 75

Accounting Tools

JUNE 19, 2023

Related Courses Accounting for Intangible Assets Fixed Asset Accounting How to Audit Fixed Assets What is Amortization? Amortization is the process of incrementally charging the cost of an asset to expense over its expected period of use, which shifts the asset from the balance sheet to the income statement.

Auditing 75

Auditing Accounting Accounting 75

Accounting Tools

APRIL 14, 2024

The bonus method is used to grant a new partner additional capital in a partnership when the person is adding goodwill or some other intangible asset to the partnership. If the capital amount granted is less than the tangible asset contribution, the difference is allocated to the incoming partner.

Tax 40

Tax Accounting Accounting 40

Accounting Tools

SEPTEMBER 7, 2023

A classified balance sheet presents information about an entity's assets , liabilities , and shareholders' equity that is aggregated (or "classified") into subcategories of accounts. Instead, a business can choose which accounts will be included in each balance sheet line item. There is no standardized classification system.

Computation 75

Computation Financial Statements Tax Accounting 75

Accounting Tools

JUNE 21, 2023

Related Courses Bookkeeper Education Bundle Bookkeeping Guidebook The Balance Sheet What is an Asset? An asset is an expenditure that has utility through multiple future accounting periods. Since this expenditure has utility through multiple future periods, it is recorded as an asset.

Bookkeeping 75

Bookkeeping Billing Accounts Receivable Accounts Receivable 75

Accounting Tools

MAY 10, 2024

What is a Long-Lived Asset? A long lived asset is any asset that a business expects to retain for at least one year. This definition can be broadened to include any asset that is expected to be retained for more than one accounting period. There are excessive costs incurred to acquire or construct the asset.

Auditing 40

Auditing Accounting Accounting 40

Accounting Tools

JULY 10, 2023

Related Courses Accounting for Intangible Assets What is a Soft Asset? A soft asset is an intangible asset , such as brand recognition and intellectual capital. Soft assets are also considered to include the human resources of a business, which are its employees and their skills and experience.

Accounting 40

Accounting Accounting 40

Accounting Tools

JULY 24, 2023

Related Courses Accounting for Intangible Assets Fixed Asset Accounting How to Audit Fixed Assets What is Accumulated Amortization? Accumulated amortization is the cumulative amount of all amortization expense that has been charged against an intangible asset.

Auditing 40

Auditing Accounting Accounting 40

Accounting Tools

FEBRUARY 23, 2024

How to Value Intellectual Property The valuation of intellectual property involves assigning a dollar value to the non-tangible assets of an entity. There is also a time component to this calculation, in that the acquirer might require years of effort in order to create the intellectual property.

Financial Analysis 40

Financial Analysis Accounting Accounting 40

Accounting Tools

JUNE 14, 2023

Related Courses Accountants' Guidebook GAAP Guidebook How to Account for Research and Development The accounting for research and development involves those activities that create or improve products or processes. The core accounting rule in this area is that expenditures be charged to expense as incurred.

Accounting 75

Accounting Accounting Computation Billing 75

Accounting Tools

JULY 14, 2023

Related Courses Accounting for Intangible Assets Fixed Asset Accounting How to Audit Fixed Assets What is Amortize? To amortize is the process of writing off the book value of an asset over its useful life. The term is most commonly applied to intangible assets.

Auditing 40

Auditing Accounting Accounting 40

Accounting Tools

JULY 8, 2023

Related Courses Accounting for Intangible Assets Fixed Asset Accounting How to Audit Fixed Assets What is Straight Line Amortization? Straight line amortization is a method for charging the cost of an intangible asset to expense at a consistent rate over time.

Auditing 40

Auditing Accounting Accounting 40

Accounting Tools

DECEMBER 30, 2023

A business may go to great lengths to obtain legal protections for its intellectual property, and take legal action to pursue anyone using these assets without permission. Intellectual property is a concept or idea that has commercial value and can be protected with a copyright, patent, or trademark.

Accounting 40

Accounting Accounting 40

Accounting Tools

JULY 31, 2023

Related Courses Accounting for Leases Fixed Asset Accounting What are Leasehold Improvements? Accounting for Leasehold Improvements When you pay for leasehold improvements, capitalize them if they exceed the corporate capitalization limit. If not, charge them to expense in the period incurred.

Accounting 75

Accounting Accounting 75

Accounting Tools

JULY 8, 2023

Related Courses Capital Budgeting Fixed Asset Accounting How to Audit Fixed Assets A capital expenditure refers to the expenditure of funds for an asset that is expected to provide utility to a business for more than one reporting period.

Computation 74

Computation Budgeting Auditing Accounting 74

Accounting Tools

JUNE 8, 2023

Related Courses Accounting for Intangible Assets Intangible Asset Valuation How to Account for Intangible Assets An intangible asset is a non-physical asset that has a useful life of greater than one year. More extensive examples of intangible assets are noted below.

Accounting 40

Accounting Accounting Computation 40

Accounting Tools

SEPTEMBER 18, 2023

Related Courses Bookkeeper Education Bundle Bookkeeping Guidebook The Balance Sheet What are Total Assets? Total assets refers to the total amount of assets owned by a person or entity. Assets are items of economic value, which are expended over time to yield a benefit for the owner.

Accounts Receivable 75

Accounts Receivable Accounts Receivable Account Receivables Bookkeeping 75

Accounting Tools

DECEMBER 17, 2023

IFRS is the international accounting framework within which to properly organize and report financial information. It is derived from the pronouncements of the London-based International Accounting Standards Board (IASB). It is currently the required accounting framework in more than 140 countries.

Financial Statements 75

Financial Statements Financial Reporting Tax Accounting 75

Accounting Tools

MARCH 24, 2023

Related Courses Accounting for Intangible Assets Fixed Asset Accounting Goodwill Impairment Essentials What is Amortization of Intangibles? Amortization of intangibles is the ongoing, structured expensing of the carrying amount of an intangible asset over its estimated useful life.

Computation 40

Computation Accounting Accounting 40

Accounting Tools

OCTOBER 7, 2023

Related Courses Accountants’ Guidebook Bookkeeping Guidebook Cost Accounting Fundamentals What is a Deferred Expense? The cost is recorded as an asset until such time as the underlying goods or services are consumed; at that point, the cost is charged to expense. In this case, the cost of the interest is a deferred expense.

Financial Statements 75

Financial Statements Cost Accounting Financial Reporting Accounting Software 75

Accounting Tools

JANUARY 9, 2024

What is a Hidden Asset? A hidden asset is an asset that is either not stated or understated on the balance sheet of the reporting entity. As another example, a business invests in its brand image for many years, but accounting convention requires that the related expenses be charged to expense as incurred.

Accounting 40

Accounting Accounting 40

Accounting Tools

JUNE 11, 2023

Related Courses Accounting for Intangible Assets Fixed Asset Accounting How to Audit Fixed Assets What is Amortization? It essentially reflects the consumption of an intangible asset over its useful life. It essentially reflects the consumption of an intangible asset over its useful life.

Auditing 40

Auditing Accounting Accounting 40

Accounting Tools

NOVEMBER 5, 2023

Related Courses Bankruptcy Tax Guide Essentials of Corporate Bankruptcy What is the Liquidation Basis of Accounting? Liquidation basis accounting is concerned with preparing the financial statements of a business in a different way if its liquidation is considered to be imminent. Related Articles Statement of Affairs

Accruals 71

Accruals Accounting Accounting Financial Statements 71

Accounting Tools

OCTOBER 6, 2023

Related Courses Fixed Asset Accounting How to Audit Fixed Assets What is a Long Lived Asset? A long lived asset is any asset that a business expects to retain for at least one year. This definition can be broadened to include any asset that is expected to be retained for more than one accounting period.

Computation 40

Computation Auditing Tax Accounting 40

Accounting Tools

OCTOBER 9, 2023

Related Courses Accounting for Intangible Assets Fixed Asset Accounting What is Goodwill Amortization? Goodwill amortization refers to the gradual and systematic reduction in the amount of the goodwill asset by recording a periodic amortization charge.

Financial Statements 75

Financial Statements Accounting Accounting 75

Accounting Tools

AUGUST 23, 2023

Principal Accountabilities Create and monitor a system of controls, procedures, and forms for the recordation of fixed assets. Principal Accountabilities Create and monitor a system of controls, procedures, and forms for the recordation of fixed assets. Assign tag numbers to fixed assets. Must be detail oriented.

General Ledger 40

General Ledger Accounting Accounting Reconciling 40

Accounting Tools

JUNE 15, 2023

Related Courses Business Valuation Fixed Asset Accounting What is a Hard Asset? A hard asset is a tangible asset ; something that can be seen and touched. A hard asset has historically been the most common type of long-term asset , such as production equipment, buildings, and vehicles.

Accounting 40

Accounting Accounting 40

Accounting Tools

AUGUST 4, 2023

Related Courses Accounting for Intangible Assets Fixed Asset Accounting How to Audit Fixed Assets How to Account for Fixed Assets A fixed asset is an item having a useful life that spans multiple reporting periods, and whose cost exceeds a certain minimum limit (called the capitalization limit ).

Accounting 76

Accounting Accounting Accounts Payable Accounts Payable 76

Accounting Tools

NOVEMBER 8, 2023

Related Courses Business Ratios Guidebook The Interpretation of Financial Statements What is the Asset Coverage Ratio? The asset coverage ratio measures how well an organization can pay its debts. Subtract from the total of these assets the amounts recorded on the books for any intangible assets.

General Ledger 40

General Ledger Financial Statements Collections Accounts Receivable 40

Accounting Tools

JANUARY 21, 2024

Depreciable cost is the combined purchase and installation cost of a fixed asset , minus its estimated salvage value. Depreciable cost is used as the basis for the periodic depreciation of an asset. The concept does not apply to an intangible asset , since this type of asset is amortized , rather than depreciated.

Auditing 40

Auditing Accounting Accounting 40

Accounting Tools

AUGUST 27, 2023

Related Courses Business Combinations and Consolidations CPA Firm Mergers and Acquisitions Divestitures and Spin-Offs Mergers and Acquisitions What is Acquisition Accounting? However, most assets and liabilities should be measured as of the acquisition date. This fair value analysis is frequently done by a third-party valuation firm.

Accounting 40

Accounting Accounting CPA 40

Accounting Tools

MAY 19, 2023

Related Courses Cost Accounting Fundamentals Cost Management Guidebook What is a Deferred Cost? In the meantime, it appears on the balance sheet as an asset. Once March arrives, you consume the asset and change it into rent expense.

Financial Reporting 74

Financial Reporting Cost Accounting Accounting Accounting 74

Accounting Tools

AUGUST 27, 2023

Related Courses Business Combinations and Consolidations CPA Firm Mergers and Acquisitions Divestitures and Spin-Offs Mergers & Acquisitions What is the Acquisition Method of Accounting? However, most assets and liabilities should be measured as of the acquisition date. Under GAAP, some intangibles cannot be recognized as assets.

Accounting 40

Accounting Accounting CPA 40

Accounting Tools

JUNE 14, 2023

Related Courses Business Combinations and Consolidations Divestitures and Spin-Offs Mergers and Acquisitions Goodwill is an intangible asset generated from the acquisition of one entity by another. The acquirer must recognize goodwill as an asset as of the acquisition date.

Accounting 75

Accounting Accounting 75

Accounting Tools

JUNE 14, 2023

A financial statement review is a service under which the accountant obtains limited assurance that there are no material modifications that need to be made to an entity's financial statements for them to be in conformity with the applicable accounting framework (such as GAAP or IFRS ). Are cash accounts being reconciled?

Financial Statements 75

Financial Statements Auditing Accruals Financial Reporting 75

Accounting Tools

SEPTEMBER 1, 2023

Related Courses Fixed Asset Accounting How to Audit Fixed Assets What is Depreciation Expense? Depreciation expense is that portion of a fixed asset that has been considered consumed in the current period. The account is then used again to store depreciation charges in the next fiscal year.

Auditing 40

Auditing Accounting Accounting 40

Accounting Tools

NOVEMBER 9, 2023

Related Courses Accounting for Leases What is a Lease? First, the lessee reduces its exposure to asset ownership. First, the lessee reduces its exposure to asset ownership. Second, the lessee obtains financing from the lessor in order to pay for the asset. And finally, the lessee now has access to the leased asset.

Accounting 40

Accounting Accounting 40