Is Advertising an Expense or an Asset?
August 24, 2023 - Improve Accounting

Advertising is an important part of any business, but it can be difficult to decide whether it should be treated as an expense or an asset. This article will discuss the pros and cons of both approaches, helping you to decide which is best for your business. We’ll look at the different types of advertising, the costs associated with each, and the potential returns.

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What is a Shell Corporation?
August 18, 2023 - Improve Company Governance

Shell corporations, also known as shell entities, are distinguished by the absence of significant business operations or assets. They are now inactive and are used for a variety of financial activities. Shell corporations can be used for legitimate purposes such as tax planning, asset protection, and confidentiality. But, they can also be used for illicit activities like money laundering and fraud.

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Is Accounts Receivable an Asset or Revenue?

Accounts Receivable is an important asset for any business. It is the money owed to a company by its customers for goods or services that have been delivered or used, but not yet paid for. Accounts Receivable is considered an asset because it is money that is owed to the company and can be collected in the future. It is also considered a form of revenue because it is money that has been earned but not yet received.

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How to Record The Disposal of Assets
August 17, 2023 - Improve Accounting

Are you looking for a way to record the disposal of assets? This article provides a comprehensive guide to help you understand the process and ensure that all assets are properly disposed of. We’ll discuss the importance of asset disposal, the steps involved, and the best practices to follow.

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Is Accumulated Depreciation an Asset or Liability?
August 16, 2023 - Improve Accounting

Accumulated depreciation is an accounting concept that is used to track the depreciation of an asset over its useful life. It is a non-cash expense that is recorded on the balance sheet as a reduction of the asset’s value.

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How to Use The Quick Ratio in Financial Analysis

The Quick Ratio is an important tool for financial analysis. It is a measure of a company’s liquidity and its ability to pay short-term obligations. It is calculated by dividing a company’s current assets, excluding inventory, by its current liabilities.

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What is the Difference Between Assets and Liabilities?

Assets and liabilities are two of the most important concepts in accounting and finance. They are used to measure the financial health of a business or individual. The difference between assets and liabilities is that assets are items of value owned by a business or individual, while liabilities are obligations or debts owed by a business or individual.

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Is Depreciation a Direct Cost or Indirect Cost?

Is Depreciation a Direct Cost or Indirect Cost? Depreciation is an accounting concept that is used to spread the cost of an asset over its useful life. It is a non-cash expense that is used to reduce the value of an asset on the balance sheet.

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What’s The 50% Rule in Accounting?
July 22, 2023 - Improve Accounting

The 50% rule in accounting is a guideline businesses use to classify expenses. If an expense is more than half the cost of replacing an asset, it’s a capital expenditure. This rule is important for companies to record expenses an keep proper financial records. It helps differentiate between costs that are big enough to be capital […]

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