Intangible assets are resources owned by a company that have value but no physical form. Common intangible assets within a company include patents, trademarks, goodwill and franchise licenses.

The straight-line method is the simplest way to account for the amortization of a bond on a company's financial statements. This method attributes equal interest expense to every accounting period ...

The straight-line method depreciates an asset on the assumption that the asset will lose the same amount of value for the duration of its service life. The straight-line method requires you to ...

When a bond has an interest rate that's higher than prevailing rates in the bond market, it will typically trade at a price higher than its face value. Such a bond is said to trade at a premium, and ...

Straight line method spreads an asset's cost evenly over its life, aiding in clear financial planning. Using this method simplifies financial statements, making a company's health easier to assess.

Depreciation expense can be a big portion of a company’s total expense. And since expenses decrease income, it affects the overall value of a company. Understanding what it is and the methods can help ...

When a business acquires an asset to be used in its operations, the cost of the asset is generally not expensed all at once. Rather, the cost is depreciated over a period of time that depends on the ...

When companies invest in assets, they expect those assets to last a certain number of years. Over time, they’re depreciated based on their remaining serviceable life and any potential saleable value ...

Depreciation reflects asset value loss over time, affecting financial statements. Straight-line method spreads depreciation evenly, while accelerated front-loads expenses. Understanding depreciation ...