Under the accrual basis of accounting, you must record revenues and expenses in the accounting period in which they were earned or incurred, regardless of when payment occurs. An adjusting entry is a ...

Companies will often buy a large amount of certain supplies to take advantage of cost reductions when buying in volume. These types of purchases might be anything that is regularly used in the company ...

Understand adjusting entries for accounting purposes, how they are made and what they impact. Many, or all, of the products featured on this page are from our advertising partners who compensate us ...

FASB Accounting Standards Codification (ASC) Topic 842, Leases, issued in February 2016, marked a significant overhaul in the financial reporting of long-term leases. Its adoption created many ...

Melissa Horton is a financial literacy professional. She has 10+ years of experience in the financial services and planning industry. Somer G. Anderson is CPA, doctor of accounting, and an accounting ...

Generally accepted accounting principles dictate that rent expense should be shown on the financial statements of a business as a consistent amount from month to month. In accounting parlance, that's ...