And companies are required by law to state which accounting method they used in their published financials. FIFO can be a better indicator of the value for ending inventory because the older items have been used up while https://www.wave-accounting.net/ the most recently acquired items reflect current market prices. As technology advances and consumer demands evolve, […]
Categoria: Bookkeeping
It must be noted that the final depreciation expense equals the salvage value of the asset. Depreciation is carried out for tangible assets which are the physical assets. A company acquires these assets to increase productivity and raise the overall performance of the business. Intangible assets are amortized which is a concept similar to depreciation […]