Search results
Results from the WOW.Com Content Network
A journal entry is the act of keeping or making records of any transactions either economic or non-economic. Transactions are listed in an accounting journal that shows a company's debit and credit balances. The journal entry can consist of several recordings, each of which is either a debit or a credit. The total of the debits must equal the ...
The leasing company setting the residual values (RVs) will use their own historical information to insert the adjustment factors within the calculation to set the end value being the residual value. In accounting, the residual value could be defined as an estimated amount that an entity can obtain when disposing of an asset after its useful ...
The basis value is the price of the fixed asset. Tax on recapture is calculated by = (BookValue – BasisValue) x TR Capital gains tax = (BasisValue – Salvage Value) x TR/2 Disposal tax effect (DTE) = (tax on recapture + Capital gains tax) If a company sells an asset for less than the tax basis this causes a loss in capital.
An asset's initial book value is its actual cash value or its acquisition cost. Cash assets are recorded or "booked" at actual cash value. Assets such as buildings, land and equipment are valued based on their acquisition cost, which includes the actual cash cost of the asset plus certain costs tied to the purchase of the asset, such as broker fees.
A company can maintain one journal for all transactions, or keep several journals based on similar activity (e.g., sales, cash receipts, revenue, etc.), making transactions easier to summarize and reference later. For every debit journal entry recorded, there must be an equivalent credit journal entry to maintain a balanced accounting equation ...
Double entry Accounting is achieved by: Debit – debtors account with value of sales (increasing a current asset) Credit – sales account with total amount (increasing income) Choose credit sales journal if this stock is then on-sold to customers who will pay later. The people/organizations here are known as debtors.
FIFO and LIFO accounting are methods used in managing inventory and financial matters involving the amount of money a company has to have tied up within inventory of produced goods, raw materials, parts, components, or feedstocks. They are used to manage assumptions of costs related to inventory, stock repurchases (if purchased at different ...
Generally Accepted Accounting Principles (GAAP) [a] is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC), [1] and is the default accounting standard used by companies based in the United States.