Bookkeeping

Accumulated Depreciation is a contra-asset account that reduces the asset’s gross value. It is reported on the Balance Sheet, alongside the asset’s gross value. The Depreciation Disclosure includes Accumulated Depreciation and is essential for stakeholders. Accumulated Depreciation is used to calculate the asset’s net book value. It is a critical component of the Financial Statement, …

Accumulated Depreciation Explained Bench Accounting Read More »

To learn more about this process, check out our article on how to record the journal entry for disposal of fixed assets. This is the amount of the cost of an asset that is allocated and reported at the end of each reporting period. It is calculated by subtracting the value an asset is likely …

Amortization vs depreciation: What are the differences? Read More »

For instance, if a company incurs legal fees from a lawsuit that is unrelated to its main operations, these fees would be classified as non-operating expenses. This distinction is vital for assessing a company’s operational efficiency and long-term profitability. You incur $30,000 in cost of goods sold (COGS) and sell the finished product the following …

GAAP Expense Recognition Principles for Financial Accuracy Read More »

Typically, any expense ratio higher than 1 percent is high and should be avoided. Over an investing career, a low expense ratio could easily save you tens of thousands of dollars, if not more. However, it’s important to note that many investors choose to invest in funds with high expense ratios if it’s worth it …

How to calculate food cost percentage for menu pricing Read More »