Accounting Articles

July 16, 2014

A sale of an asset for cash is generally easy to account for. A gain or loss is recorded for the difference between the asset痴 book value and the cash received. What happens when an asset is exchanged for a similar asset? In this article we値l cover the accounting treatment for such nonmonetary exchanges.

July 8, 2014

Derivative accounting is a complex subject filled with complicated transactions, financial statement presentations, and disclosures. In this article, we値l scratch the surface of the derivative field and hedging activities, which are integrally related to derivatives.

July 1, 2014

We have previously discussed various methods of estimating bad debt expense, including percentage of sales and percentage of accounts receivable. In this article, we expand on the percentage of accounts receivable method by incorporating accounts receivable aging.

June 24, 2014

All businesses are not created equally. Apple and Google have massive operations in multiple geographic regions across the world, while a small manufacturing company might only own a single factory in Michigan. Should these three companies produce the exact same financial statements? In this article, we値l look at how diversified companies are required to report operating segment results.

June 16, 2014

Owning a share of stock in a company might earn you a few dollars, but you don稚 get to do a whole lot of decision-making as such a small investor. Corporations, on the other hand, invest in equity securities on a much larger scale. In this article, we値l look at three different methods of accounting for stock investments.

June 9, 2014

What would happen to a corporation if the long-term CEO were to die? Some businesses carry life insurance policies for just such an event because of potential operation disruptions. In this article we値l discuss briefly the journal entries for business-owned life insurance (BOLI) policies.

June 2, 2014

The matching principle tells us to expense costs in the same period that those costs provide some benefit to the company. Interpretation of the matching principle gets a bit fuzzy when dealing with research and development.

May 23, 2014

Estimates and uncertainty are both normal for companies, but sometimes an event occurs that might be considered unpredictable even by corporate standards. Should these improbable events be mixed in with the results of regular operations or should they be reported separately? U.S. GAAP and international accounting standards (IFRS) disagree on the answer to that question.

May 13, 2014

Corporations are capable of purchasing its own shares of stock on the open market, but these types of transactions are not accounted for like normal investments. In this article, we値l go over basic accounting procedures to use when the company buys, sells, or retires treasury stock.

May 4, 2014

Some business plans just don稚 seem to pan out. Perhaps a product line underperforms or a subsidiary posts major losses due to a shift in consumer demand. Special rules apply whenever a company decides to sell off or otherwise dispose of a business segment.

   1    2    3    4    5    6    7    8    9    10    ...   Next >>   

Accounting Articles
Accounting Articles include guides and answers. Accounting guides explain application of accounting principles in practice. Great assistance if you are looking for real-life accounting situations. Accounting answers explain particular accounting topics suggested by our website users. Great to find quick answers for specific topics.