Discover how accruals affect company finances, with insights into the accrual accounting method, its applications, and examples illustrating its principles.

Sometimes companies purchase businesses for more than what they are actually worth. The difference between a business' actual worth and what someone pays for that business is referred to as goodwill.

An accountant uses a suspense account, a temporary account in the business chart of accounts, for recording all or part of a transaction that she doesn't know how else to code. When she identifies the ...

Cash- and accrual-based business accounting are two methods for tracking financial performance. Learn which is right for your business.

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. David Kindness is a Certified Public ...