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Market value stands for the price you can acquire when you sell an asset in a market that is open and competitive. On the other hand, an asset’s book value is the cost you spent when you purchase it initially, and you need to make adjustments for any successive alterations, for example, depreciation or impairment … Read moreAre Market Value and Book Value the Same?

Occupations in the financial field compose an extensive section of the corporate area. This is comprehensible since the world of business is all about generating revenue. It is normal if you are confused between similar professions in the same sector.  Accounting and economics are excellent examples of such situations. Accounting and economics are somehow relevant. … Read moreThe Relationship Between Accounting and Economics

Prepayments Prepayments are the payments you make before you get the advantages from them. For instance, rental is a prepayment as it typically has to be settled in advance. Accruals Accruals are costs that you have incurred, but you have not paid. For instance, an unpaid water bill is an accrual expenditure, since the water … Read moreIntroduction to Prepayments and Accruals

As an entrepreneur, it is a must for you to keep excellent bookkeeping records. This is because a lot of researches have proved that business with inadequate accounting documents and account books are more likely to fail. Such company also possess lesser opportunities for survival when they are compared to companies that maintain excellent accounting … Read morePractices That You Should Avoid in Bookkeeping

Some assets will last for years, for example, equipment, machines, buildings, furnishings, computers, vehicles, and parking lots. However, they are not going to last forever. When an accounting period passes by, a part of the value of these assets is depleted. On the income statement, you will record the depleted part as Depreciation Cost. Depreciation … Read moreWhat is Depreciation?