Generally Accepted Accounting Principles (GAAP) include a multitude of options for writing off balance sheet assets. All assets are eventually written off except for land. It’s the only asset viewed as having an “infinite” life. […]
Last week, my post discussed the principle of accounting for operating inflows referred to as the revenue recognition principle. Continuing with the overarching theme of accrual accounting, this week I’ll write a few things about the application of measuring outflows (i.e. expenses) from operations. […]
Accrual accounting is a system of recognizing inflows and outflows. My goal in writing about it does not include a conversation about all the technical aspects that are well beyond the scope of “blog posts.” Rather, I want to provide a decent “feel” for the terminology so it can become more useful when you are analyzing the financials of companies, especially the Income Statement. […]
I’m teaching a governmental accounting course this term at FSU Panama City. State and local governments use something called “funds” to track the source and use of resources involved with carrying out governmental activities. You’ve likely heard of terminology like the “General Fund” before, for example. The objective of accounting for governmental activity is to achieve “fiscal” accountability. […]
