Contra Account Definition

Depreciation expense flows through to the income statement in the period it is recorded. Accumulated depreciation is presented on the balance sheet below the line for related capitalized assets. The accumulated depreciation balance increases over time, adding the amount of depreciation expense recorded in the current period. Allowance for doubtful accounts is a common contra …

Contra Account Definition Read More »

Capital Definition

Content Employees Are Not Assets Liability Defined By The Iasb How To Calculate Liabilities Is Cash An Asset? The true liability to business stems from government rules and regulations and the 650 MP’s who spend their time dreaming up ever more obtuse regulation. The comment by the Business Secretary cast my mind back to the …

Capital Definition Read More »

The Difference Between Bad Debt And Doubtful Debt

The uncollectible accounts expense account shows the company estimates it cost $750 in January to sell to customers who will not pay. The accounts receivable account shows the company’s customers owe it $50,000. The allowance for uncollectible accounts shows the company expects its customers to be unable to pay $750 of the $50,000 they …

The Difference Between Bad Debt And Doubtful Debt Read More »