Keeping accurate accounting records is an important part of running a successful small business. In addition to protecting your business in case of an audit, organized records help provide a picture ...

Generally accepted accounting principles dictate that rent expense should be shown on the financial statements of a business as a consistent amount from month to month. In accounting parlance, that's ...

Companies in need of cash commonly turn to long-term debt, such as issuing bonds and obtaining bank loans. The interest that accrues on long-term debt is treated as a business expense for both book ...

There are two basic methods of accounting that businesses use to track and report revenues: the cash basis and the accrual basis. Under the accrual basis, revenues are recorded on a company's income ...

Most investors are familiar with financial accounting. It is the financial reports and standards we use to review a company's financial performance each quarter and year. Inside the company, though, ...

Over time, the value of a company's capital assets decline. This is a normal phenomenon driven by wear and tear, obsolescence, and other factors. This depreciation in the asset's value must be ...

Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia. Vikki Velasquez is a researcher and writer who has managed, coordinated, and directed ...

Discover the key types of operating expenses, including fixed and variable costs, and learn how they impact a business's bottom line.

The handling of prepaid expense deferrals and expense accruals will be consistent with the last nine fiscal years. General Accounting processes all prepaid expense deferrals and accruals for all of ...

Depreciation reflects asset value loss over time, affecting financial statements. Straight-line method spreads depreciation evenly, while accelerated front-loads expenses. Understanding depreciation ...