All expenses incurred before a company is formed i.e. cost incurred before the start of business operations is termed as preliminary expenses. They are a common example of fictitious assets and …
A company’s operating profit is its total earnings from its core business functions for a given period, excluding the deduction of interest and taxes. It also excludes any profits earned …
Obsolescence is a notable reduction in the utility of an inventory item or fixed asset. The determination of obsolescence typically results in a write-down of the inventory item or asset …
Net realizable value (NRV) is the value of an asset that can be realized upon the sale of the asset, less a reasonable estimate of the costs associated with the …
Net Profit and Net Loss A business may earn from various different operating and non-operating sources. Furthermore, it may pay for several different continuous and one-time events. The difference between indirect expenses and …
Net fixed assets is a valuation metric that measures the net book value of all fixed assets on the balance sheet at a given point in time calculated by subtracting …
Net worth is the value of the assets a person or corporation owns, minus the liabilities they owe. It is an important metric to gauge a company’s health, providing a …
A mortgage is a loan that the borrower uses to purchase or maintain a home or other form of real estate and agrees to pay back over time, typically in …
In accounting, materiality refers to the impact of an omission or misstatementof information in a company’s financial statements on the user of those statements. If it is probable that users …
A lease is a contract outlining the terms under which one party agrees to rent property owned by another party. It guarantees the lessee, also known as the tenant, use …
