Should the useful life of a newly acquired fixed asset be the same as its physical life? This and other questions related to fixed asset useful lives are answered in this article.

Ever wondered what the cost of quality is? This article explains what such cost is and provides examples of prevention costs, appraisal costs, internal failure costs, and external failure costs.

Learn about operating leverage and how one can compare operating leverage across companies.

Learn about discretionary costs, view examples of such costs, and understand instances where discretionary costs may be changed to manage earnings.

Learn about incentive compensation types and accounting entries for cash bonuses.

Learn about accounting for advances to employees and officers with real-life examples and journal entries.

Learn about accounting for obsolete inventory with examples of obsolescence reserve journal entries.

Learn about the impact of capitalizing vs expensing costs in the current and future periods.

Learn about three methods to recognize expenses: association of cause and effect, systematic and rational allocation, and immediate recognition.

Learn about non-operating revenues and expenses.