Cost Recovery Method: Example & When to Use

Cost Recovery Method: Example & When to Use

      First off, so you dont get confused, there is something called the accelerated cost recovery system (ACRS) that is used more by tax professionals and certified public accountants (CPAs). It is basically a way to schedule depreciation rates in an accelerated way to reap the reward of tax credits at tax time as depreciation is an expense. Read more

What Is Gross Profit?

What Is Gross Profit?

    By and large, businesses exist to make a profit, and determining just how profitable a business is is key to understanding just how well that business is doing. Some popular measures of profitability include gross profit and net profit. More than any other fact, investors want to know how much money a company is keeping after it has settled it obligations to suppliers, employees, and the government. Read more

What Is Net Profit and How Is It Calculated?

    No figure seems more important to business stakeholders and those that peruse their financial statements than net profit. As a matter of fact, it is almost the first figure that draws the eye on financial and income statements. That is because it tells whether the operation is providing a positive return on the capital that was invested. In this article, we answer the question, “What is net profit” and how it is calculated. Read more