Accounting

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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What Are Biological Assets and How to Account for Them?

Companies require assets to generate revenues. These include resources owned or controlled by a company that results in inflows of economic benefits. In accounting, these inflows may occur through the asset’s value or use. These resources are crucial in helping companies continue their operations. The assets companies use may differ based on their needs and …

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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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Which is Better, Biweekly or Semimonthly Pay? (Here Are the Points You Might Not Know)

Employees are a crucial part of any company or business. Companies employ individuals to work for them and operate their resources. In exchange, those individuals receive funds through payroll payments. Depending on their rank and experience, their remuneration may differ. Usually, both parties set the payment rates through an employment contract. The payroll function within …

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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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