Accumulated depreciation is the sum of an asset’s depreciation expense. It’s calculated from the start of its use to a specific date. It’s also a contra-asset account. That means it decreases the ...

Small errors in asset valuation or missed liabilities can distort your farm's financial health, writes Ohio State University ...

Tax preparers of IRS Form 1120S for a subchapter S corporation are required to do an annual calculation to reconcile the corporation's balance sheet on the tax return, Schedule L, with the net income ...

Depreciation is an accounting methodology that allocates the cost of an asset over its expected useful life. Learn more about how depreciation works and how it affects company financials. blackred ...

Julia is a writer in New York and started covering tech and business during the pandemic. She also covers books and the publishing industry. With over a decade of editorial experience, Rob Watts ...

A balance sheet is a financial document that presents the financial status of a business through an accounting of a company’s assets, liabilities, and equity. A balance sheet, when looked at with a ...

The balance sheet comprises assets, liabilities and owner's equity -- that is, the capital contributed by the owner of the business. These three items essentially represent the net worth of a business ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Khadija Khartit is a strategy, investment, ...

When a business acquires an asset to be used in its operations, the cost of the asset is generally not expensed all at once. Rather, the cost is depreciated over a period of time that depends on the ...

Charlene Rhinehart is a CPA , CFE, chair of an Illinois CPA Society committee, and has a degree in accounting and finance from DePaul University. As the name implies, a balance sheet should reveal ...

A strong balance sheet can make all the difference between your investment surviving a market downturn and blowing up in your face. Nearly every financial crisis can be traced back to a foundation of ...