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Amounts owed to a business that are on a credit basis are considered a current asset on the books and
Amounts owed to a business that are on a credit basis are considered a current asset on the books and
Amounts owed to a business that are on a credit basis are considered a current asset on the books and
Amounts owed to a business that are on a credit basis are considered a current asset on the books and
The answer to this question lies in the durable life of the 'cost' you incurred. Typically, the costs which are capitalised are for items which have an expected lifetime of over 1 year. We are thinking of computer equipment (hopefully, you're not going to buy a new computer every year and throw away the old one), a building (you're not going to buy it for just one year), etc. By capitalising the cost, the item is now considered an asset, and will stay on your books for the life of the underlying item. By amortising the asset, you are in fact spreading the cost of the asset over the lifetime of the asset. Example: we buy a computer for 1000 EUR, and we intend on using it for 3 years. You will mark the computer as a fixed asset (computer equipment), and amortise it over 3 years, so you are spreading the cost equally over the lifetime of the computer itself. The first year you will amortise 334 EUR, then 333 EUR, then 333 EUR.
Debt issuance costs are costs associated with debt acquired by the Company. They are capitalized (asset on the balance sheet) and amortized over the life of the loan. So if the total debt issuance costs were $5,000 and the life of the loan was 5 years, amorization would be $1000 a year. As such, at the end of the loan term the asset will no longer be on the books.
the process of decreasing the amount of principal on a loan over a scheduled period of time
Books such as "Depreciation and Amortization" or "Capital Expenditure Accounting" would cover the topic of how to account for and recover the cost of assets over time, including through methods like depreciation or amortization. These books provide guidance on recording asset values, calculating depreciation or amortization expenses, and understanding how these processes impact financial statements and tax liabilities.
asset
Amounts owed to a business that are on a credit basis are considered a current asset on the books and
Amounts owed to a business that are on a credit basis are considered a current asset on the books and
Amounts owed to a business that are on a credit basis are considered a current asset on the books and
Amounts owed to a business that are on a credit basis are considered a current asset on the books and
Amounts owed to a business that are on a credit basis are considered a current asset on the books and
Amounts owed to a business that are on a credit basis are considered a current asset on the books and
Amounts owed to a business that are on a credit basis are considered a current asset on the books and
Amounts owed to a business that are on a credit basis are considered a current asset on the books and