Operating income, on the other hand, focuses solely on profits generated from core business operations, excluding non-operating factors. Some assets give up their services gradually rather than all at once. To estimate depreciation, the accountant must predict both how long the asset will continue to provide useful services and how much of its potential to [Continue]

So with these core commonalities in mind, let’s dive into our topic. I’m going to go over the basic steps for recognizing revenue and expenses under accrual accounting, and then I’m going to give you some examples that will help clarify everything. In this lesson, we’re going to take a deep dive into the accounting [Continue]