” It is important to investors as it represents the profit for the year attributable to the shareholders. The important thing to remember about an income statement is that it represents a period of time. This contrasts with the balance sheet, which r...
The time value of money is the concept that a sum of money has greater value now than it will in the future due to its earnings potential. Future value is the value of a currentassetat a specified date in the future based on an assumed rate of growth...
After all, intangible assets (patents, copyrights, trademarks, etc.) decline in value over time, and it’s important to denote that in your accounts. A technique used to determine the loss in the value of the long-term fixed tangible asset due to usag...
As specified byGenerally Accepted Accounting Principles , accrued revenue is recognized when a performance obligation is satisfied by the performing party. For example, revenue is recognized when the customer takes possession of a good or when a serv...
Finally, the value of using a process costing system is to collect data to make improvements in your business. The first dollars spent in a process costing system are for materials. That’s because you purchase materials before you pay workers to do s...