Sum of Years’ Digits Depreciation
Sum of the Years’ Digits (SYD) is a type of accelerated depreciation method that has a unique way of calculating the depreciation …
Financial Accounting
Straight Line Depreciation Method
The straight line method is the easiest way of spreading the cost of an asset over its useful life. In …
Double-Declining Balance Depreciation Method
Accelerated depreciation techniques charge a higher amount of depreciation in the earlier years of an asset’s life. One way of accelerating …
Average Cost Method of Inventory Valuation
Besides FIFO and LIFO, the Average Cost Method is another common way for accountants to value inventory. In this lesson, I explain the …
Difference between Assets and Liabilities
Knowing how to differentiate between assets and liabilities is fundamental in understanding the accounting equation. The distinction between the two elements of …
Last-In First-Out (LIFO Method)
If you’re new to accountancy, calculating the value of ending inventory using the LIFO method can be confusing because it …
First-In First-Out (FIFO Method)
Finding the value of ending inventory using the FIFO method can be tricky unless you familiarize yourself with the right …
A Simple Introduction to Accounting
If you are new to accounting, it can be confusing to figure out why we need to study accounting and …
19 Types of Expenses
Expenses are the cost of various resources that are consumed in running a business. In this post, I will explain …
Relationship Between Financial Statements
You cannot judge a book by its cover and any business through a single financial statement. Knowing the different types …
