Prepaid Income
Prepaid income is revenue received in advance but which is not yet …
Financial
Accrued Expense
Accrued expense is expense which has been incurred but not yet paid. …
Accrued Income
Accrued income is income which has been earned but not yet received. …
Accruals Basis of Accounting
Financial statements are prepared under the Accruals Basis of accounting which requires …
Accounting for Disposals
Fixed assets may be sold anytime during their useful life. This gives …
Sum of the years’ digits | Depreciation Method
Definition Sum of the years’ digits depreciation method involves calculating depreciation based on the sum …
Units of Production Depreciation Method
Units of Production Depreciation Method, also known as Units of Activity and …
Declining Balance Depreciation Method
Reducing Balance Method charges depreciation at a higher rate in the earlier …
Straight Line Depreciation Method
Explanation Straight line depreciation method charges cost evenly throughout the useful life …
Depreciation Methods
Cost of a fixed asset must be charged to the income statement …