Adequate Disclosure.

Adequate disclosure is a accounting term that refers to the amount of information that a company must provide in its financial statements in order to fairly represent its financial position and results of operations. The concept of adequate disclosure is important because it helps to ensure that investors and other users of financial statements have … Read more

Mark-To-Market Losses.

Mark-to-market losses (MTMLs) are accounting losses that occur when the market value of a security or other asset falls below the value at which it is carried on the balance sheet. MTMLs are also sometimes referred to as mark-to-market write-downs. When an asset’s market value falls, the MTML is the difference between the asset’s carrying … Read more

Due From Account.

The term “Due From Account” refers to an account on a company’s balance sheet that represents money that is owed to the company by another entity. This could be money that is owed by a customer, a vendor, or another company. The money that is owed to the company is typically for goods or services … Read more

Just-in-Time (JIT): Definition, Example, Pros & Cons.

Just-in-Time (JIT): Definition, Pros & Cons. What are the main problems with a JIT production strategy? 1. JIT production strategies can be inflexible and may not be able to accommodate changes in customer demand or unexpected production problems. 2. JIT production can lead to higher inventory levels and thus higher carrying costs. 3. JIT production … Read more

What Is an Installment Sale?

Installment sales are a type of sales contract where the buyer pays for the property or goods in periodic payments, rather than in one lump sum. The seller records the sale as revenue when each payment is received. How do you record accounts receivable? Assuming you would like to know how to record accounts receivable … Read more

Depreciation, depletion, and amortization.

. DD&A What type of expense is amortization? Amortization refers to the process of allocating the cost of an intangible asset over its useful life. Intangible assets are non-physical assets that provide economic benefits to a business, but do not have a physical form. Examples of intangible assets include patents, copyrights, and goodwill. The amortization … Read more

Non-Interest Income.

Non-interest income includes all forms of income earned by a financial institution that are not directly related to the interest earned on loans and other investments. Non-interest income can come from a variety of sources, including fees charged for services, income from the sale of products, and other miscellaneous sources. Which type of account is … Read more

How Liquidation Value Measures a Company’s Worth.

In accounting, liquidation value is the estimated proceeds that would be received from the sale of a company’s assets if the company were to be dissolved. This value is typically lower than the fair market value of the assets, as it does not take into account the company’s earnings potential or future growth. Liquidation value … Read more

EBITDA: Meaning, Formula, and History.

EBITDA: Meaning, Formula, History. What does Ebita stand for? Ebita stands for “Earnings Before Interest, Taxes, and Amortization.” It is a measure of a company’s profitability that excludes interest, taxes, and amortization expenses. How is EBITDA calculated for small business? EBITDA is calculated by taking a company’s earnings before interest, taxes, depreciation, and amortization. This … Read more

Accounting Policies Definition.

An accounting policy is a set of guidelines that a company follows when preparing its financial statements. The policies cover topics such as revenue recognition, inventory valuation, and asset depreciation. The purpose of having accounting policies is to ensure that financial statements are prepared in a consistent manner from one period to the next. This … Read more