The goal of accounting is to produce fair and accurate statements about a company's financial performance and condition. An underlying principle of accounting is to connect the expenses that are ...

Depreciation and amortization are two methods used in accounting to assess the decrease in the value of assets over time. While depreciation is similar to amortization, they differ in the type of ...

The straight-line method is the simplest way to account for the amortization of a bond on a company's financial statements. This method attributes equal interest expense to every accounting period ...

Straight line method spreads an asset's cost evenly over its life, aiding in clear financial planning. Using this method simplifies financial statements, making a company's health easier to assess.

When a bond has an interest rate that's higher than prevailing rates in the bond market, it will typically trade at a price higher than its face value. Such a bond is said to trade at a premium, and ...

Steven Nickolas is a writer and has 10+ years of experience working as a consultant to retail and institutional investors. Charlene Rhinehart is a CPA , CFE, chair of an Illinois CPA Society committee ...