A charge-off or chargeoff is a declaration by a creditor (usually a credit card account) that an amount of debt is unlikely to be collected. This occurs w...

A “payment-in-kind” (PIK) note (or loan) is a way for companies to borrow money. When issuing a bond, a company typically borrows a fixed amount of money,...

Detection risk occurs when an auditor fails to identify a material misstatement in a company’s financial statements. There are three types of audit risk: ...

The cost principle, also known as the historical cost principle states that assets should be recorded at their original cost, rather than their current ma...

The objectivity principle states that accounting information and financial reporting should be independent and supported with unbiased evidence. This mean...

Goodwill is treated as an intangible asset in the consolidated statement of financial position. It arises in cases, where the cost of purchase of shares i...

CR. abbreviation. conditioned reflex; conditioned response. consciousness-raising. What is CR and CD in accounting? For example, CR is the two-letter code...

Revenue is reported on the income statement only when cash is received. Expenses are only recorded when cash is paid out. The cash method is mostly used b...

American Airlines, the largest U.S. airline, said it lost $9.5 billion, including special accounting items, for the full year, and $2.2 billion in the fou...

Electricity is a good example of a semi-variable cost. The base rate for service may be constant, but as production grows, power consumption and the compa...