What is an Acquisition Cost? An acquisition cost, also referred to as the cost of acquisition, is the total cost that a company recognizes on its books for property or equipment after adjusting for discounts, incentives, closing costs and other necessary expenditures, but before sales taxes. An acquisition cost may also entail the amount needed … Continue reading Acquisition Cost →

What is Business Acquisition? Business acquisition is the process of acquiring a company to build on strengths or weaknesses of the acquiring company. A merger is similar to an acquisition but refers more strictly to combining all of the interests of both companies into a stronger single company. The end result is to grow the … Continue reading Business Acquisition →

What Is Accounts Receivable Financing? Accounts receivable (AR) financing is a type of financing arrangement in which a company receives financing capital related to a portion of its accounts receivable. Accounts receivable financing agreements can be structured in multiple ways usually with the basis as either an asset sale or a loan. Accounts receivable financing … Continue reading Accounts Receivable Financing →

What are accounting principles? Accounting principles are the general rules and guidelines that companies are required to follow when reporting all accounts and financial data. Whilst there is currently no universally standardised accepted accounting principles, there are various accounting frameworks which set the standard body. The most common accounting principle frameworks used are IFRS, UK … Continue reading Accounting Principles →

What Are Accounting Policies? Accounting policies are the specific principles and procedures implemented by a company’s management team that are used to prepare its financial statements. These include any accounting methods, measurement systems, and procedures for presenting disclosures. Accounting policies differ from accounting principles in that the principles are the accounting rules and the policies … Continue reading Accounting Policies →

What is the Accounting Method? Accounting method refers to the rules a company follows in reporting revenues and expenses. The two primary methods are accrual accounting and cash accounting. Cash accounting reports revenue and expenses as they are received and paid; accrual accounting reports them as they are earned and incurred. Understanding the Accounting Method … Continue reading Accounting Method →