Accounting

Examples of Intangible Assets

Type of Intangible Assets

The first thing that probably comes to your mind when thinking about assets is likely cash or maybe a piece of property. These are assets that you can see and touch in the form of money, a building, and so on. However, intangible assets are different in that they lack a physically existence. Furthermore, they …

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Is Cash a Debit or Credit?

Cash normal balance

Is cash a debit or credit in accounting? Cash is an asset. Assets have a normal balance of a debit. This means that cash will increase with a debit and decrease with a credit. An example of a journal entry that would be created from a company receiving cash of $1,000 from a sale would …

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Is Treasury Stock an Asset?

Treasury Stocks

Is treasury stock an asset? Treasury stock is stock that has been reacquired or repurchased by a company of their own shares. When stock is reacquired and placed into treasury stock, it is not considered retired. It can be reissued at a future time if the company chooses. A company does have the option to retire …

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What is Restricted Cash?

Restricted Cash Defined

What is restricted cash? Restricted cash is money that is not available to freely spend by a business because it is intended to be used for a particular purpose. It is money set aside for a specific purpose that cannot be used for things like everyday operating expenses or investments. Some examples of restricted cash …

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What are Fixed Assets?

Fixed Assets Defined

 What are fixed assets? Fixed assets are tangible assets that are intended to be used for business operations that have a useful life beyond a year. These assets are commonly called property, plant and equipment (PP&E). They are not intended for resale and are not a part of the product that is sold. They are assets …

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Accounts Receivable Journal Entry

Journal Entries for accounts receivable

What are the journal entries for account receivable? Accounts receivable is the money owed from clients for purchased goods or services on credit. For example, a sports equipment manufacturer might ship sporting goods to a retail store and allow the store 30 days for payment. As the sports equipment manufacturer waits for the payment, the …

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Is Depreciation an Expense?

why is depreciation an operating expense

Is depreciation an expense? To give a short answer, depreciation is an operating expense. Keep reading for an explanation. When a company purchases an asset such as equipment or a building, it is capitalized. This means that the purchase is not recognized as an expense on the income statement, but rather as an asset on …

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What are Noncurrent Assets?

non-current assets definition

What are noncurrent assets? Noncurrent assets are assets that are not projected to be converted into cash within the accounting year. They are typically assets that cannot quickly be liquidated. A common definition of noncurrent assets is any assets that is not a current asset. The three common types of noncurrent assets are tangible fixed …

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