Accounting Category: Accrual accounting

Accounting Articles

October 27, 2014

Revenue recognition is one of the key issues accountants have to deal with on a regular basis. Its usually straightforward for a merchandiser, but when should revenue be recognized when the company accepts a contract that will take several months to several years to complete? In this article, well discuss two methods for recognizing revenue from contracts.

July 8, 2014

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

February 21, 2013

Most companies purchase and use fixed assets (also called property, plant and equipment). Fixed asset costs are allocated to multiple accounting periods by recording depreciation expense. What is the impact of not depreciating fixed assets?

September 26, 2012

If you ever worked in an accounting department, you are probably familiar with reversing entries. However, for non-accountants reversing entries represent an accounting term which may sound technical and confusing. In this article we will talk about reversing entries and why they are used.

August 29, 2012

Do you normally just look at the net income of a company? Do you analyze the company's cash flows from operations? See how the two are connected in this article discussing the quality of income.

August 20, 2012

What are operational obligations? What are financing obligations? How is a bond different from a note payable? How to define long-term liabilities? Find answers in this accounting article.

September 14, 2010

Two methods to account for prepaid expenses: balance sheet approach and income statement approach.

Accounting Categories
Accounting categories represent a collection of accounting guides and answers related to one accounting area.