This makes our list of important accounting formulas because once you understand it, you can see at a glance how healthy your business is. For example, let’s say the balance of your bank ...

Accounting Rules for Capitalizing Assets. The cost of an asset with a useful life greater than one year can be spread over a period of time using depreciation. The asset will show up on the ...

A balance sheet includes a summary of a business’s assets, liabilities, and capital. Learn what a balance sheet should include and how to create your own.

The formula for year one would be (5/15) x ($25,000 - $2,000) = $7,667. So the first year's depreciation expense would be $7,667.

This study evaluates the association between the market value of banks' common equity and fair value estimates disclosed under Statement of Financial Accounting Standards No. 107, "Disclosures about ...