Bookkeeping

If an asset has an unlimited useful life, such as a piece of land, it is not considered a depreciable asset in accounting. That’s because such assets can be practically used forever without any apparent reduction in value. The time period over which an asset is depreciated depends on https://www.bookstime.com/articles/employment-contracts-for-small-businesses its classification. For example, a purchase classified …

Depreciable Property: Meaning, Overview, FAQ Read More »

These are some simple examples, but even the most complicated transactions can be recorded in a similar way. If a transaction is completely omitted from the accounting books, it will not unbalance the accounting equation. The basic concept of accounting equation is to express two main points in the accounting rule. The fundamental accounting equation, …

Definition, Explanation and Examples Read More »