Why do we use and why does our understanding accrual accounting matter? In subsequent write-ups, I will elaborate on why these details matter, but for now, the focus is on the details. Hint: it is not a love a rules … Continue reading
Expenses relate only to the income statement, expenditure does not. This is why an expense is referred to as a “temporary” account. That is, accounts on the income statement are a snapshot in time, the measurement of what happened in … Continue reading
Mark to Market is an incendiary accounting topic, mainly due to the abuses as expressed in the much noted and documented history of Enron. Even now (three years into a recovery), we are living through one of the most difficult … Continue reading
What I originally liked about accounting was the symmetry of the double entry concept. The way accounts and entries must balance appealed to a highly rational approach to business. But it still took a long time for me to … Continue reading