by Accountant Town | Aug 16, 2019 | Income Statement
Accounting Principles – Secondary Income In the same manner that deducting cost of sales—from income from sales—produced gross profit on sales, so the deduction of cost of sales, plus selling and administration expenses, from income from sales produces net...
by Accountant Town | Aug 16, 2019 | Income Statement
Accounting Principles – Deductions from Income In discussing the items under this group it is again necessary to consider capital as the medium whereby the business of the organization is transacted. In theory, the group contains only items which are in the...
by Accountant Town | Aug 16, 2019 | Income Statement
Accounting Principles – Depreciation Depreciation may be defined as the decrease in the value of an asset, due to deterioration through lapse of time, wear and tear, or obsolescence. It is, under all circumstances, an estimate. It has been very strikingly...
by Accountant Town | Aug 16, 2019 | Income Statement
Accounting Principles – Interest The commonly accepted definition of interest is “Money paid for the use of money.” The late Colonel Sprague, who perhaps gave more thought to the subject of interest than any other man who has written on the subject, took a...
by Accountant Town | Aug 16, 2019 | Income Statement
Accounting Principles – Insurance Insurance may be defined as a contract whereby, in consideration of a premium paid by one party to another, the former is protected by the latter from loss. Insurance may be of various kinds: Life, fire, accident, health,...
