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 […]

Examples of Intangible Assets Read More »

Is Cash a Debit or Credit?

Cash normal balance

[otw_shortcode_dropcap label=”Q:” size=”large” border_color_class=”otw-no-border-color”][/otw_shortcode_dropcap] Is cash a debit or credit in accounting? [otw_shortcode_dropcap label=”A:” size=”large” border_color_class=”otw-no-border-color”][/otw_shortcode_dropcap] 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

Is Cash a Debit or Credit? Read More »

Is Treasury Stock an Asset?

Treasury Stocks

[otw_shortcode_dropcap label=”Q:” size=”large” border_color_class=”otw-no-border-color”][/otw_shortcode_dropcap] Is treasury stock an asset? [otw_shortcode_dropcap label=”A:” size=”large” border_color_class=”otw-no-border-color”][/otw_shortcode_dropcap] 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.

Is Treasury Stock an Asset? Read More »

What is Restricted Cash?

Restricted Cash Defined

Q: What is restricted cash? A: 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

What is Restricted Cash? Read More »

What are Fixed Assets?

Fixed Assets Defined

[otw_shortcode_dropcap label=”Q:” size=”large” border_color_class=”otw-no-border-color”][/otw_shortcode_dropcap] What are fixed assets? [otw_shortcode_dropcap label=”A:” size=”large” border_color_class=”otw-no-border-color”][/otw_shortcode_dropcap] 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

What are Fixed Assets? Read More »

Accounts Receivable Journal Entry

Journal Entries for accounts receivable

[otw_shortcode_dropcap label=”Q:” size=”large” border_color_class=”otw-no-border-color”][/otw_shortcode_dropcap] What are the journal entries for account receivable? [otw_shortcode_dropcap label=”A:” size=”large” border_color_class=”otw-no-border-color”][/otw_shortcode_dropcap] 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

Accounts Receivable Journal Entry Read More »

Is Depreciation an Expense?

why is depreciation an operating expense

[otw_shortcode_dropcap label=”Q:” size=”large” border_color_class=”otw-no-border-color”][/otw_shortcode_dropcap] Is depreciation an expense? [otw_shortcode_dropcap label=”A:” size=”large” border_color_class=”otw-no-border-color”][/otw_shortcode_dropcap] 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

Is Depreciation an Expense? Read More »

What are Noncurrent Assets?

non-current assets definition

[otw_shortcode_dropcap label=”Q:” size=”large” border_color_class=”otw-no-border-color”][/otw_shortcode_dropcap] What are noncurrent assets? [otw_shortcode_dropcap label=”A:” size=”large” border_color_class=”otw-no-border-color”][/otw_shortcode_dropcap] 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

What are Noncurrent Assets? Read More »