Deferred expenses are expenses that have been incurred but have not yet been paid. For example, if a company has received services but has not yet paid for them, the company would record a deferred expense entry. Debits will equal credits (unless something is terribly wrong with your system). A nominal account is an account […]

Current book value is the asset’s net value at the start of an accounting period. It’s calculated by deducting the accumulated depreciation from the cost of the fixed asset. While the straight-line depreciation method is straight-forward and most popular, there are instances in which it is not the most appropriate method. Assets are usually more

The level of maintenance and upkeep performed on an asset throughout its lifespan can affect its salvage value. Proper maintenance and regular upkeep can help preserve an asset’s condition and functionality, increasing its salvage value. On the other hand, neglected or poorly maintained assets may have a reduced salvage value due to their diminished condition.