Author: John

Temporarily Restricted Net Assets

Companies and organizations use assets to meet their objectives. In most cases, the company and its management control how they use those assets. However, it may not be the case every time. Some organizations may also have restrictions exposed to their funds from various sources. Usually, it is more common …

Distribution Costs: Definition, Examples, Accounting, Journal Entry, Importance

Most companies focus on the cost of their products or services. Usually, these include direct and indirect production costs, including material, labor, and overheads. These determine a product’s profitability after deducting those costs from the sale price. However, they do not show how profitable the company is because other expenses …

Historical Cost Principle: Definition, Example, Accounting, Importance

When recording an asset in the financial statements, companies must have a value for it. However, it may not be as straightforward as there are several techniques to derive this cost. Most accounting principles rely on historical costs when recognizing various elements. However, some may also allow other methods, such …