Monat: Januar 2022

Deferred Revenue You can have it but not yet earned it

As the services are provided, the deferred revenue liability is reduced on the debit side, and the earned revenue is recognized. A company would need to debit deferred revenue when it performs the services or delivers the goods for which it has received advance payments. This reduces the liability on the balance sheet and recognizes…
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11. Januar 2022 0

Accumulated Depreciation Formula + Calculator

The amount directly reduces the net worth of the company’s assets and can therefore influence equipment decisions about whether to invest in asset maintenance, upgrade, or replacement. For example, Company A buys a company vehicle in Year 1 with a five-year useful life. Regardless of the month, the company will recognize six months‘ worth of…
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6. Januar 2022 0