An intangible asset is a useful resource without any physical presence. Patents, copyrights, trademarks, and goodwill etc are intangible assets. Such assets produce economic benefits but you can’t touch them like other physical assets like Property Plants and...

Meaning of Intangible Assets Intangible assets are those assets which have no physical identity or presence. And therefore, one can not touch or see those assets. But they are identifiable and have a long term financial value for a business organization. They can be...

Depreciation is a very important and real operating expense. Although it is a non-cash expense and does not require any current cash outflow, nonetheless it can’t be ignored in the financial statements. Capitalized cost of an asset is allocated through depreciation....

Balance Sheet, also known as the Statement of Financial Position represents for a given company, its financial position at a given date (generally last date of an accounting period). Balance sheet, along with income statement and cash flow statement, gives the...

What are Accounting Principles? Accounting Principles are the rules and benchmarks in the accounting field, a company should follow while reporting the financial statements. The common set of accounting standards as per the U.S.A. is GAAP (Generally Accepted...

Accounting period refers to the time period for which accounting books are balanced and preparation of financial statements is done by business entities to evaluate their financial performance or for reporting to external parties/stakeholders. Every business depends...

Accounting can be defined as the process of maintaining financial records and estimates and using the information to take critical financial decisions. In simple words, accounting is an art of recording all transactions of business and knowing the result of carrying...

There are four Financial Statements which are prepared during an accounting year. In this article, we will focus our attention on the Income Statement. We will learn what the income statement is, how is it prepared. The income statement is a financial report that...

What is Fixed Asset? Fixed asset, in accounting, is defined as a long-term asset having lifespan > 1 financial year and value > capitalizing limit. They are typically bought to generate income. They are also known as Capital Assets and Property, Plant and...

Expenses are as important for a company as revenues. A business can’t earn revenue, if it does not make necessary expenses. We can divide business expenses primarily into capital expenditure or CAPEX and operation expenditure or OPEX. Both the expenses are related to...