How to Read and Understand an Income Statement

Bookkeeping

Utilize accounting software and a detailed checklist to ensure accurate entries and comprehensive income tracking. When it comes to financial statements, each communicates specific information and is needed in different contexts to understand a company’s financial health. When deciding how you’d like to report your net income, it’s important to consider the pros and cons…

What Are Common Examples of Noncurrent Assets?

Bookkeeping

But noncurrent assets may likewise include intangible items, such as intellectual properties like design patents. Such items’ useful lives typically exceed one fiscal year and are unlikely to be liquidated within that time frame. Instead, patents take an amortization approach, where their costs are spread out over their useful lives, which can span many years—even…

Bookkeeping Asset Accounts

Bookkeeping

Non-operating assets are those cafeteria plans assets that are not required for daily business operations. Fixed assets are also referred to as noncurrent assets, long-term assets, or hard assets. If assets are classified based on their usage or purpose, assets are classified as either operating assets or non-operating assets. Assets in Accounting: A Beginners’ Guide…