Accounting / July 17, 2018 / Justice Buckley
Other types of working capital include Initial working capital and Regular working capital. The capital required by the promoters to initiate the business is known as initial working capital. On the other hand, regular working capital is one that is required by the firm to carry on its operations effectively.
Asset retirement obligation accounting is essential to renewal, remediation and restoration work performed on property, such as cleaning up a brown field, removing hazardous infrastructure, or expensive dismantling of infrastructure improvements. It does not apply to work done for and costs associated with disaster or accident cleanup. An asset is considered retired when it is permanently taken out of service, such as through sale or disposal. Retirement obligations can be recognized either when the asset is placed in service or during its operating life at the point when its removal obligation is incurred.
As a businessperson, the commercial lease you sign for your business is one of the most important documents you'll ever create. Take the time to learn the clauses you should expect to see in any commercial lease and what those clauses mean.
Reconciliation is an accounting process that uses two sets of records to ensure figures are correct and in agreement. It confirms whether the money leaving an account matches the amount that's been spent, and making sure the two are balanced at the end of the recording period. The purpose of reconciliation is to provide consistency and accuracy in financial accounts.
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