Why Land is not Depreciated? (2 Exceptions)
Since land is often classified with other long-term assets in the balance sheet that are depreciable such as buildings and equipment, it …
Financial Accounting
Assets that Can and Cannot Be Depreciated
To estimate the amount of profit and assets of any business correctly, we must know how to differentiate between assets …
Effects of Transactions on Accounting Equation
Understanding how different transactions impact the accounting equation is critical for keeping the accounting books neat and tidy. This post …
Liabilities Vs. Equity: What’s the difference
Although liabilities and equity are both shown on the right side of the balance sheet, there are significant differences between these …
The Accounting Equation: A Beginners’ Guide
Understanding how the accounting equation works is one of the most important accounting skills for beginners because everything we do in accounting …
What is Owner’s Equity? How to Calculate it
Owner’s equity is one of the three components of the accounting equation so understanding its basics is a key step …
Assets in Accounting: A Beginners’ Guide
Assets are one of the key building blocks of accounting that holds the entire accounting equation together. In this guide, I explain the meaning …
Difference between Assets and Equity
For anyone new to accounting, assets and equity can seem like one and the same thing. Differentiating between these accounting …
Accounting for Repairs and Maintenance Costs
Knowing how to account for repairs and maintenance costs can be tricky at times because its accounting treatment can vary …
Depreciation Base of Assets
Before we can calculate the depreciation expense of an asset, we need to know how much of its original cost will …