Bookkeeping

PP&E may be liquidated when a company is experiencing financial difficulties. Selling property, plant, and equipment to fund business operations may signal financial trouble. Companies can also borrow from their PP&E as a floating lien, meaning the equipment can be used as collateral for a loan. What Is Included in the Plant Assets? The objective […] More

Period costs are not attached to products and the company does not need to wait for the sale of its products to recognize them as expense on income statement. According to generally accepted accounting principles (GAAPs), all selling and administrative costs are treated as period costs. A liability is defined as something that a company […] More