Fixed Assets

These are large ticket purchases that have an extended utilization life. They are not typically sold in the due course of business and as such they are expensed through a system called depreciation.

How to Read a Balance Sheet – Simple Format

Assets

Reading a balance sheet is instrumental in understanding the business’s financial position.  This particular financial report is a snapshot of a moment in time.  It can change dramatically in a minute so understanding the perspective of the report and its respective sections will help you to be better informed. So what is a balance sheet?  …

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Depreciation – This is Weird Accounting

In the world of accounting, there are two types of expenses on the reports widely misunderstood.  They are depreciation and amortization.  I will try to help the novice gain an understanding of depreciation in this article.  So if you can, clear your mind and let us begin: In business we buy all types of goods to …

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