The expanded accounting equation builds upon the basic accounting equation's use of assets, liabilities and equity by incorporating additional components such as revenues, expenses and withdrawals.

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 ...

One of the tax law changes proposed in the U.S. Senate bill, but not in the House of Representatives bill, would require investors to use a First In, First Out (FIFO) accounting methodology for tax ...

Do you have enough working capital in your business? Maybe not, and you would probably like to have more – right? Working capital is a metric that small business owners should be tracking on a weekly ...

Monitoring cash disbursements helps gauge a business's cash flow and capital availability. Using business bank accounts simplifies tracking cash payments; credit payments are tracked when billed.

Steven Nickolas is a writer and has 10+ years of experience working as a consultant to retail and institutional investors. Charlene Rhinehart is a CPA , CFE, chair of an Illinois CPA Society committee ...

Deciding where to invest your capital is one of the most critical decisions a business owner or a financial manager can make. It’s a process of weighing potential returns against the risks of a ...

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