These permanent accounts maintain a cumulative balance and offer a bigger picture of a company’s ongoing transactions. All of the income statement accounts are classified as temporary accounts. A few other accounts such as the owner’s drawing account and the income summary account are also temporary accounts. Permanent accounts are accounts that you don’t close […]
Category Archives: Bookkeeping
You can all too easily record lost, damaged, or stolen assets in your business’s books. Putting an asset management plan in place gives you an accurate view of the value of your assets at all times so you can make more informed decisions. Even licenses and permits fall into the category of intangible non-current assets. […]
It does not impact net income or earnings, which is the amount of revenue left after all costs, expenses, depreciation, interest, and taxes have been taken into consideration. Depreciation allows a company to spread the cost of an asset over its useful life, which avoids having to incur a significant cost from being charged when […]