Accounting

What are Bonds Payable? Are they Current or Non-current liabilities?

A bond is considered a fixed-income debt instrument that provides finance to companies and issuers. In most cases, these instruments come with a fixed interest rate. However, some may also come with a floating rate. Either way, bonds allow companies to raise finance. In exchange, it provides the investor with the right to receive interest …

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Accounting for Borrowing Costs (Journal Entry and Example)

Companies use assets for various purposes, primarily including the generation of revenues. These assets include resources owned or controlled by a company. Similarly, these resources result in an inflow of economic benefits in the future. They consist of inventories, cash, accounts receivables, and fixed assets. Of these, the fixed assets constitute a significant portion of …

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Binding and Non-binding Contracts: What are the differences?

Companies deal with various parties. Usually, they include creditors and debtors, consisting of suppliers and customers. However, they may also transact with other parties, such as lenders, investors, employees, etc. For each transaction, companies set various aspects that dictate the relationship. These aspects may also compel both parties to meet their obligations. Companies use legal …

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What is a Betterment in Accounting?

Accountants may come across several transactions where the classification is challenging. One of these instances includes differentiating between assets and expenses. In accounting, assets include resources owned or controlled by an entity. These resources result in the inflow of economic benefits in the future. Usually, assets include inventories, cash, property, plant, equipment, receivables, etc. On …

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