Depreciation Expense & Straight-Line Method w Example & Journal Entries
When a depreciable asset is sold (as opposed to traded-in or exchanged for another asset), a gain or loss on the sale is likely. However, before computing the gain or…
Types of Accounting: Understanding Different Methods
Cash accounting works best for small businesses or freelancers who have simple transactions. It’s also great for those who want a clear view of their cash flow without the complexity…
Operating Cycle: Definition, Formula, Calculation, Examples
As a result, your business has enhanced liquidity, can meet its short-term obligations, and can invest in growth opportunities. When the operating cycle is shorter, it indicates frequent sale of…
Internal vs External Audits: Key Differences Explained
While the internal and external audit functions are complementary and may need to work closely together, their purposes and areas of focus differ. assets = liabilities + equity The Institute…