Bookkeeping

In summary, the accountant resets the temporary accounts to zero by transferring the balances to permanent accounts. To further clarify this concept, balances are closed to assure all revenues and expenses are recorded in the proper period and then start over the following period. The revenue and expense accounts should start at zero each period, …

Bookkeeping Debits and Credits in the Accounts Read More »

The “double” means 200% of the straight line rate of depreciation, while the “declining balance” refers to the asset’s book value or carrying value at the beginning of the accounting period. The Double Declining Balance Method (DDB) is a form of accelerated depreciation in which the annual depreciation expense is greater during the earlier stages …

Double-Declining Balance Depreciation Method Read More »