What is capitalization and what does it mean when a cost is capitalized?

Capitalize: What It Is and What It Means. What items should be capitalized? There are a few key items that should always be capitalized on a financial statement, including: -Revenue -Expenses -Assets -Liabilities -Equity How does capitalization affect the balance sheet? Capitalization refers to the process of recording certain expenditures as assets on the balance … Read more

Accounting Manual.

An accounting manual is a document that contains the guidelines and procedures for financial reporting and accounting. It is typically used by accountants and auditors to ensure that financial statements are prepared in compliance with generally accepted accounting principles (GAAP). What are the 4 types of accounting? 1. Financial Accounting Financial accounting is the process … Read more

Target Return.

The target return is the average return that an investor hopes to achieve on an investment. For example, an investor who has a target return of 10% would hope to earn an average of 10% on their investment over time. There are a number of factors that can impact an investor’s target return, including their … Read more