In addition to common and preferred stock, retained earnings are a key component of a company’s equity. This represents the portion of profits that are not paid out as dividends. In contrast, they are kept within the company. Thus, retained earnings are generated when a company generates profit. Then, the company can decide to retain […]
What is Straight Line Depreciation?
As far as accounting goes, straight-line depreciation is a straightforward calculation for small business accounting. Be sure to focus on getting the right numbers to ensure accuracy. This will help solve problems and avoid raising questions with your investors and stockholders. Physical Assets Straight line depreciation is best suited for the expenses of physical assets […]
What is depreciation? In accounting terms, depreciation represents the decrease in the value of assets over time. Assets such as cash or heavy equipment are likely to lose value over time due to market conditions, useful life, or other related situations. Understanding the depreciation of your assets can help you better prepare for your tax […]