In accounting, net worth is defined as assets minus liabilities. Essentially, it is a measure of what an entity is worth. For an individual, it represents the properties owned, less any debt the ...

Suppose you buy a major asset like a new piece of machinery. Under standard accounting rules, you cannot write off the cost of the machinery in the year you incur the expense. Rather, you have to ...

What Is Financial Accounting Standard 157 (FAS 157)? Financial Accounting Standard 157 (FAS 157) is the Financial Accounting Standards Board (FASB)’s controversial fair value accounting standard, ...

Goodwill in accounting and investing is a term used to describe intangible assets that don't appear in hard numbers on a balance sheet. These can include a host of things that companies tend to value ...

Current Cost Accounting attempts to capture the effect of inflation on asset values (and liabilities) by recording them at their current replacement cost, i.e. the cost of obtaining an identical ...

Steven Nickolas is a writer and has 10+ years of experience working as a consultant to retail and institutional investors. Thomas J. Brock is a CFA and CPA with more than 20 years of experience in ...