Before we discuss bonus depreciation, let’s define depreciation.
You usually can’t report the entire expense of a fixed asset in the year of purchase. It’s customary to break up the expense over a period of years. You depreciate an asset over its useful life, reflecting the time you expect the asset to generate revenue and be of use to the business.
It’s a story that seemingly never ends. You get out of college, have some car trouble, and find yourself in credit card debt—in many cases—for the first time ever. It can happen very fast. But hopefully, you were able to pay off your credit card debt in just a few months and move on.
Perhaps you’ve gotten a raise or a bonus, and you want to pay off the remaining balance on a personal loan. Is that possible? The short answer is “yes” and, in many cases, it can be a wise decision.
After all, when you get extra cash, it can often be beneficial to pay off debt. But, if there’s a prepayment penalty, then this loan payoff…
Assertions are claims made by business owners and managers that the information included in company financial statements — such as a balance sheet, income statement, and statement of cash flows — is accurate. These assertions are then tested by auditors and CPAs to verify their accuracy.
The cash conversion cycle (CCC) measures the number of days it takes to convert inventory investments into cash. While the premise may sound complicated, it’s easy to calculate these cash conversions if you understand the formula.
The coronavirus has upended countless jobs, schools and bank accounts. But while undoubtedly more people are struggling than not, those who are still working may have seen their expenses actually drop, due to canceled travel, limited dining options and more time at home.
If you’ve managed to end up with extra money during the pandemic, here’s…
A post-closing trial balance is the final trial balance prepared before the new accounting period begins. Used to make sure that beginning balances are correct, the post-closing trial balance is also used to ensure that debits and credits remain in balance after closing entries have been completed.